The Long Run Is a Period of Time

question 208

Multiple Choice

The long run is a period of time:

• A) that is too short to change the size of a firm's plant.
• B) that is long enough to permit changes in all the firm's inputs, both fixed and variable.
• C) in which production occurs beyond one year.
• D) in which production occurs beyond five years.

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Definitions:

Equilibrium

A state of balance or stability within a system, achieved through the equal action of opposing forces.

Gestalt Law

Principles of the Gestalt psychology movement that describe how humans naturally organize visual elements into whole objects rather than perceiving the parts separately.

Similarity

The state or fact of being alike or having common features or attributes.

Gestalt Law

Psychological principles that describe how humans tend to organize visual elements into groups or unified wholes.