The Long Run Is a Time Frame in Which

question 91

Multiple Choice

The long run is a time frame in which

• A)the firm can hire all the workers it wants to employ,but it does not have sufficient time to buy more equipment.
• B)the firm is able to maximize revenue.
• C)the firm may want to build a bigger plant,but cannot do so.
• D)economic efficiency is achieved.
• E)the quantities of all factors of production can be varied.

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Definitions:

Output

The total amount of goods and services produced by an economic system over a specific period.

Price

The sum of money needed to buy a product, service, or property.

Demand Curve

The demand curve is a graphical representation showing the relationship between the quantity of a good consumers are willing and able to purchase and its price.

Marginal Revenue

The additional income that is generated by selling one more unit of a good or service.