Question

30. The long run of the firm is a time horizon in which:
a. economic efficiency is achieved
b. the firm can hire all the workers that it wants to employ, but it does not have sufficient time to buy more equipment c. the quantities of all inputs can be varied.
d. the firm may want to build a bigger plant, but cannot do so
e. the firm is able to maximise total profit

Answer 1

The long run of the firm is a time horizon in which all the factors of production or inputs are Variable. This means that firms have the ability to produce as much as they can in the long run as there is no restriction on inputs. They can buy or hire as many inputs as they can. So, in the long run, they can easily alter their production as per the market.

Hence, the correct answer is Option C i.e. In the long run, the quantities of all the inputs can be varied.