In the long run, all inputs are considered variable, meaning that firms can adjust the quantities of all factors of production, such as labor, capital, and land. This flexibility allows businesses to optimize their production processes and respond to changes in market conditions. Unlike the short run, where some inputs are fixed, the long run provides the opportunity for firms to achieve economies of scale and innovate in response to competitive pressures. Ultimately, this adaptability is crucial for long-term growth and sustainability.
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