PRC-3 · Chapter 12 · Question 30 of 69
A corporation is executing a 10-year strategy where it will sell its old factories, build fully automated new ones abroad, and restructure its workforce. A timeframe where all factors of production are variable is called the:
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: D) Long run
Explanation
In the long run, there are no fixed factors of production. A firm has enough time to completely vary all of its inputs, including capital and land.
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