What time frame do economists consider to be the long run?
Choose 1 answer:
(A) 1 year
(B) however much time firms need to adjust all inputs to production
(C) 5 years
(D) 6 months
(E) 10 years

Question

Accepted Answer

∻Solution∻ ‖ a ⋮ Definition of Long Run: In macroeconomics, the long run is a period of time in which all factors of production and costs are variable. ‖ ‖ b ⋮ Adjustment Period: The long run is the time frame that allows firms to adjust all inputs to production, including plant size and capital equipment. ‖ ∻Answer∻ ⚹ (B) however much time firms need to adjust all inputs to production ⚹ ∻Key Concept∻ ⚹ Long Run in Economics ⚹ ∻Explanation∻ ⚹ The long run is defined by the ability of firms to vary all inputs and production factors, not by a specific duration in years or months. ⚹◊What impact does the long-run view of economists have on overall economic policies and decision making?⍭ Generate me a similar question◊

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