What is the period in the economy that is long enough so that all factors of
production and intermediate inputs can become variable
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In economics, it expresses the idea that an economy behaves differently ... and the long run is that in the short run, firms face both variable and fixed costs, ... and is instead specific to the firm, industry or economic factor being studied. ... in the future, one or more inputs will be fixed, while others are variable.
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Short run – where one factor of production (e.g. capital) is fixed. This is a time period of fewer than four-six months. Very long run – Where all factors of production are variable, and additional factors outside the control of the firm can change, e.g. technology, government policy. A period of several years.
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