Question

Quantities of which of the following inputs can be varied in the long run?

• A. Labour
• B. Raw material
• C. Machine
• D. All of these

Hint:

In the long run, all inputs are variable, unlike the short run where some factors are fixed.

Answer 1

The Correct Option is D

Step 1: Understanding the concept of the long run in economics.
In the long run, all factors of production are variable. This means that, unlike the short run where some inputs are fixed (like machines), in the long run, firms can adjust all inputs, including labor, raw materials, and machines.

Step 2: Analyzing the options.
(A) Labour: Labour can indeed be varied in the long run, as firms can hire or lay off workers depending on their needs.
(B) Raw material: Raw materials are also variable in the long run as firms can adjust the amount of inputs they purchase.
(C) Machine: In the long run, machines can be adjusted, as firms can invest in new machinery or sell old equipment.
(D) All of these: Correct. In the long run, all inputs (labor, raw materials, and machines) can be varied.

Step 3: Conclusion.
The correct answer is (D) All of these, as in the long run, all factors of production can be adjusted.