Long Run

In business, long run refers to a period of a few months to beyond a year, where all elements of a company’s production are variable i.e. the company has time and latitude to be flexible in how it responds to altering supply and demand factors, either on the upside or the downside. It also has the option to exit a product line, enter a new market (easier where there are low barriers to entry) and find an optimal cost solution.

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