Final answer:
The period of time over which the firm can vary any of its inputs for a given production technology is called the long run. In the long run, all costs are variable, meaning that a firm can adjust its inputs such as labor, physical capital, and technology to optimize its production process.
Step-by-step explanation:
The period of time over which the firm can vary any of its inputs for a given production technology is called the long run. In the long run, all costs are variable, meaning that a firm can adjust its inputs such as labor, physical capital, and technology to optimize its production process. For example, if a firm wants to increase its output, it can hire more workers in the long run and invest in additional machinery. Conversely, if a firm wants to decrease its output, it can reduce its workforce and sell off excess machinery. In planning for the long run, a firm will compare different production technologies or processes to find the most efficient and cost-effective way to produce its desired level of output.