Asked by Radhika Pande on Apr 24, 2024

In the long run, a firm can increase its output quantity, but it will be limited by the size of its existing production plant.

Long Run

In microeconomics, a period of time long enough to enable producers of a product to change the quantities of all the resources they employ, so that all resources and costs are variable and no resources or costs are fixed.

Production Plant

A facility or set of facilities where goods are manufactured or assembled primarily from raw materials.

  • Distinguish between short run and long run in production and costs.