Consider the following statements about the long run:
(A) In the long run, there is no fixed factor of production.
(B) The long run is a period of more than one year.
(C) For different production processes, the long run periods may be different.
(D) In the long run, the total cost and the total variable cost coincide.
Choose the correct answer from the options given below:
Answer & explanation
Correct answer: option 3
The correct answer is Option (3) → (A), (C) and (D) only
(A) In the long run, there is no fixed factor of production. — Correct. All factors can be varied in the long run.
(B) The long run is a period of more than one year. — Incorrect. The long run is not a length of time. It is the period in which all inputs can be varied, so it is not defined in days, months or years.
(C) For different production processes, the long run periods may be different. — Correct. The long run of one process can be longer than that of another.
(D) In the long run, the total cost and the total variable cost coincide. — Correct. With no fixed cost, all cost is variable cost.
NCERT (2026-27): “3.2 The Short Run and the Long Run … In the long run, all factors of production can be varied. A firm in order to produce different levels of output in the long run may vary both the inputs simultaneously. So, in the long run, there is no fixed factor.” “For any particular production process, long run generally refers to a longer time period than the short run. For different production processes, the long run periods may be different. It is not advisable to define short run and long run in terms of say, days, months or years. We define a period as long run or short run simply by looking at whether all the inputs can be varied or not.” “3.7.2 Long Run Costs In the long run, all inputs are variable. There are no fixed costs. The total cost and the total variable cost therefore, coincide in the long run.” |