How do economists define the time period known as the long run?
What will be an ideal response?
The long run is the period of time for which there are no fixed factors of production. Firms can increase or decrease their scale of operation, and firms can enter or exit the industry.
You might also like to view...
Which of the following is a role of a financial intermediary?
a. Increasing risk to lenders b. Combining a large number of loans of small borrowers into a small number of deposits of large savers c. Decreasing liquidity for savers d. Reducing risk to depositors e. Increasing interest rates for both borrowers and lenders
If scientific research produces a technological breakthrough in the production of computer memory, then
a. business costs will increase, profits will fall, and production will decrease. b. business costs will fall, but profits will also fall, and production will decrease. c. business costs will fall, profits will improve, and production will increase. d. profits will increase, allowing businesses to cut back production.