The Long Run Is a Period of Time in Which

question 229

Multiple Choice

The long run is a period of time in which

• A) all factors of production are variable.
• B) all factors of production are fixed.
• C) some but not all factors of production are fixed.
• D) some but not all factors of production are variable.

---

Definitions:

Economic Profit

The difference between total revenue and total costs, including both explicit and implicit costs, indicating the overall financial gain of a business.

Own Capital

Refers to the funds or resources that a business owner personally invests in their enterprise, as opposed to borrowed capital.

Fixed Factor

An input to the production process that cannot be easily increased or decreased in the short term.

Industry Entry

Refers to the process by which new competitors join an existing market, often affecting competition and market dynamics.