the long run is a period of time, or a time-frame, in which course hero

What do you mean by long run?

The long run is a period of time, or a time frame, in which: A all resources are fixed. B the level of output is fixed. C the amount of all resources can be varied. D the capacity of the production plant is fixed. Question: The long run is a period of time, or a time frame, in which: A all resources are fixed. B the level of output is fixed.

What is meant by the term short run?

1) The long run is a time period in which A) some of the firm's resources are fixed. B) all of the firm's resources are fixed. C) all of the firm's resources are variable. D) the firm cannot increase its output. E) all costs become explicit costs. Answer: C

What is the long run in macroeconomics?

1.8 The long run is a period of time in which: a) economic efficiency is achieved b) the firm is able to maximise total profit c) the firm may want to build a bigger plant, but cannot do so d) the quantities of all inputs can be varied. ... Course Hero, Inc.

What is a long run average cost?

The long run is a period of time, or a time-frame, in which: A) All resources are fixed B) The level of output is fixed C) The amount of all resources can be varied D) The capacity of the production plant is fixed Answer: C Topic: Economic Costs

What is the long run?

The long run refers to a period of time where all factors of production and costs are variable. Over the long run, a firm will search for the production technology that allows it to produce the desired level of output at the lowest cost.

What is the difference between short and long run?

The long run is a period of time in which all factors of production and costs are variable. In the long run, firms are able to adjust all costs, whereas in the short run firms are only able to influence prices through adjustments made to production levels.

How does the long run work?

How the Long Run Works. A long run is a time period during which a manufacturer or producer is flexible in its production decisions. Businesses can either expand or reduce production capacity or enter or exit an industry based on expected profits.

What is the long run in macroeconomics?

In macroeconomics, the long run is the period when the general price level, contractual wage rates, and expectations adjust fully to the state of the economy. This stands in contrast to the short run, when these variables may not fully adjust.

What is a long run business?

For example, a business with a one-year lease will have its long run defined as any period longer than a year since it’s not bound by the lease agreement after that year. In the long run, the amount of labor, size of the factory, and production processes can be altered if needed to suit the needs of the business or lease issuer.

What is LRAC curve?

The LRAC curve is comprised of a group of short-run average cost (SRAC) curves, each of which represents one specific level of fixed costs. The LRAC curve will, therefore, be the least expensive average cost curve for any level of output. As long as the LRAC curve is declining, then internal economies of scale are being exploited.

Who is Mitchell Grant?

Mitchell Grant is a self-taught investor with over 5 years of experience as a financial trader. He is a financial content strategist and creative content editor. Learn about our editorial policies. Mitchell Grant.

What Is The Long Run?

See more on investopedia.com

How The Long Run Works

Long Run and The Long-Run Average Cost