WAEC SSCE - Economics - 2013 (Objective)

Question 1 Report

In the long term run factors of production are considered to be

at maximum

fixed

variable

increasing

Answer Details

In the long term, factors of production are considered to be variable. This means that all factors of production, such as labor, capital, and land, can be adjusted or changed according to the needs of the firm. Unlike in the short term, where some factors of production are fixed and cannot be changed, in the long term, a firm can change the amount of all its inputs. For example, it can increase or decrease the size of its factory, hire or fire workers, or invest in new machinery. The ability to adjust all factors of production in the long term allows firms to optimize their production process and achieve maximum efficiency.

Read lesson note on Factors Of Production And Their Theories (JAMB)






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