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Increase in supply due to changes in plant size will take place only in the

Economics
WAEC 2014

Increase in supply due to changes in plant size will take place only in the

  • A. normal time
  • B. long run
  • C. market period
  • D. short run
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Correct Answer: Option B
Explanation

The long run is a period of time in which all factors of production and costs are variable. In the long run, firms are able to adjust all costs, whereas, in the short run, firms are only able to influence prices through adjustments made to production levels


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