The Long Run

In economics, "the long run" refers to a period during which all of a company's inputs or resources, such as labor, capital, and technology, can be adjusted or changed. Unlike the short run, where some factors are fixed, the long run allows firms to fully adapt their operations to meet market demands, enter or exit industries, and invest in new equipment or technology. It provides a broader perspective on how businesses plan for growth, efficiency, and competition over time, reflecting the full capacity for change in response to economic conditions.