In Economics, How Long Is the Long Run

question 191

Multiple Choice

In economics, how long is the long run?

• A) more than one year
• B) 24 months or longer
• C) 5 years or more
• D) whatever time it takes a firm to vary all inputs

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Definitions:

Direct Labor Hours

The total hours worked by employees directly involved in the manufacturing process.

Payroll

The total amount of wages, salaries, and other earnings paid by a business to its employees.

Labor Efficiency

The measure of the amount of work accomplished with a specific amount of labor input.

Labor Quantity Variance

The difference between the actual labor hours worked and the standard hours expected, multiplied by the standard labor rate.