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InterviewSolution
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What do you mean by long-term Production Function? |
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Answer» Long period or long-term is defined as that period of time in which all factors of production or inputs are variable. Distinction between fixed and variable inputs is obtained only in the short-term. In the long-term, all inputs become variable, i.e. the scale of production itself can be changed by installing new plant and equipment and hiring more labour and other factor inputs. |
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