The Long Run Is a Time Period That Is

question 154

Multiple Choice

The long run is a time period that is

• A) five years or longer.
• B) long enough to change the amount of labor employed.
• C) long enough to change the size of the firm's plant and all other inputs.
• D) long enough to change the amount of labor employed but not to change the size of the plant.
• E) None of the above answers describes the long run.

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Definitions:

Quantity Sold

The total number of units of a product sold during a specific period, often used to measure business performance.

Target Return

A financial goal set for the profit or outcome from an investment or business activity.

Average Invested Capital

The mean amount of money invested in a company or project over a certain period, used to compute return on investment.

Target Profit

The projected profit a firm aims to achieve within a specific period, guiding pricing and production decisions.