The long run is defined as that period of time in which:

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The question asks about the long run, defined in economics as the period in which the firm can adjust all inputs. 
Option a: 'all factors are used' uses vague language; it does not address whether factors can be varied or fixed. Merely saying factors are used does not specify their variability over time. This makes the statement imprecise and not aligned with the standard long-run concept. 
Option b: 'all factors are variable' aligns with the standard economic definition of the long run, where a firm has the ability to adjust all inputs, including plant size, capital, and labor, with no fixed factors remaining. This reflects the idea that there are no constraints on making all factors flexible to achieve an optimal scale or production technique. 
Option c: 'some factors are fixed and some variable' describes the short run, not the long run. In the short run, at least one factor (typically capital or plant size) is fixed, limiting the degree of adjustment available to the firm. 
Option d: 'most factors are variable' suggests a high degree of flexibility but still implies that some factors might be fixed or constrained. This does not capture the full degree of freedom attributed to the long run, where all factors can be varied. 
Putting these together, the core distinction is whether all inputs can be adjusted vs. some are fixed. The long run eliminates fixed inputs, which makes option b the statement that best reflects the long-run concept.

Dashboard Term 1 Unit 7 Assessable Quiz - Economics of the Firm (2)

The long run is defined as that period of time in which:

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