What do you understand by long-run market?
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The long-run is a period of time in which all factors of production and costs are variable. In the long run, firms are able to adjust all costs, whereas, in the short run, firms are only able to influence prices through adjustments made to production levels.
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In the long-run market, the price and quantities of the products are changing easily.
What are the features of the long-run market?
- If the firm suffers from losses then it can leave this market
- In this market, the numbers of employers change depend upon the profit or loss of the firm
- The new technologies are innovated in this market to increase the production
- The changes of the economy depend upon the capital
- The firm enters this market to earn profit
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