Question

In the long-run the inputs of all the factors of production can be varied by the firm, consequently, firms can combine the factors of production more ______________ and, therefore, costs in the long-run are lower than in the short-run.

Answer 1

Answer:

Efficiently

Step-by-step explanation:

In production, long run is simply the period of time that is long enough for all inputs to be changed. While short run is the time frame, usually so brief, a firm cannot change the amount of every input. Usually, in In the short run, some inputs are fixed, while in the long run, all inputs are variable and Profit maximization can only occur with minimization of costs of inputs.

Firms can combine the factors of production more in the long-run the inputs of all the factors of production and also In a long run, it can alter ot change variousproduction levels due to various economic profits or losses in view.