Topic summary
Long run
Extracted from the Wikipedia article Long run and short run.
Long run
Since its origin, the "long period method" has been used to determine how production, distribution and accumulation take place within the economy. In the long run, firms change production levels in response to (expected) economic profits or losses, and the land, labour, capital goods and entrepreneurship vary to reach the minimum level of long-run average cost. A generic firm can make the following changes in the long run: