As Defined in the Text, the Long Run Is a Planning

question 204

Multiple Choice

As defined in the text, the long run is a planning period:

• A) in which a firm can adjust all resources.
• B) that is at least five years long.
• C) during which the firm must increase sales to stay in business.
• D) in which variable resources become fixed.

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Definitions:

Equilibrium

A state in which market supply and demand balance each other, resulting in stable prices and quantities.

Usury Laws

Regulations that set the maximum interest rate that can be charged on loans, intended to protect consumers from excessively high rates.

Rent Control

Government policies or laws that limit the amount landlords can charge for leasing a home or renewing a lease to protect tenants from sharp increases.

Price Ceiling

A government-imposed limit on the price charged for a product or service, intended to prevent prices from rising to levels considered too high for consumers.