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WAEC SSCE - Economics - 1999 (Objective)

Question 1 Report

In long run, all factors inputs are
Answer Details
In the long run, all factor inputs are variable. This means that a firm can adjust its usage of all inputs including labor, capital, and materials to produce a desired level of output. Unlike in the short run, where at least one input is fixed, in the long run, a firm has the flexibility to choose the optimal combination of inputs to minimize costs and maximize profits. This makes the long run a crucial period for firms to make strategic decisions such as expanding production, entering new markets, or investing in new technology to stay competitive.
Read lesson note on Factors Of Production (WAEC)
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