Firms in the long run

In the long run, firms have the ability to adjust all their resources and inputs, such as land, labor, and capital, to optimize their production and costs. Unlike the short run, where some factors are fixed, the long run allows firms to plan for expansion or contraction, enter or exit markets, and adopt new technologies. This flexibility means that in the long run, firms aim to achieve the most efficient production levels and minimize costs, determining whether they can be profitable or not depending on market conditions and their ability to adapt.