The long-run lasts

Question

Multiple Choice
until the next short-run begins.
for two years in most industries.
for exactly two weeks.
as long as all output and input prices stay fully flexible.

Answer 1

The correct answer is:

as long as all output and input prices stay fully flexible.

In economic terms, the long run refers to a period in which all factors of production and costs can be varied, and all prices, including wages, can adjust to changes in demand and supply conditions.