The long period is defined as a period of time which is sufficient to bring about proper changes in the scale of operations through an adjustment of the quantity of the various factors employed. The quantity of all the factors can increase or decreased according to the requirements of production. In the long – run all factors are variable and there is nothing like the fixed cost of production. if the scale of production is to be expanded, new buildings can be hired, new machinery can be installed and the administrative or sale staff can be increased. The size and the organisation of the firm can be altered to adapt the scale of its operations and thus produce the output in the most efficient way. In the technical language, the indivisible factors become divisible in the long – run and therefore they can all be used more economically. The amount of capital can be changed and improvements can be made in the management to look into the problems with greater efficiency.
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