Final answer:
The long run in economics refers to the time period in which all factors of production are variable, allowing a firm to adjust all inputs to optimize operations.
Step-by-step explanation:
In economics, the long run is a period of time when all factors of production are variable. This concept is essential in understanding how businesses plan for future growth and changes in production capacity. Unlike the short run where some inputs are fixed and cannot be changed, the long run provides the flexibility for a firm to alter all aspects of its inputs. For example, if a firm has a one-year lease on its factory, the long run would be any period longer than a year, as once the lease expires, the firm can choose to move to a different location, expand to larger facilities, or downsize if necessary. The long run allows businesses to adjust their production size by building new factories, purchasing new machinery, or closing down current operations to optimize their production processes.