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Question
Choose the correct answer :
In the long term supply becomes _________.
Options
(a) active
(b) inactive
(c) zero
(d) negative
Solution
In the long term supply becomes active.
Explanation:
In the long run, all the factors of production are variable. Hence, an entrepreneur can increase (or decrease) the size of plant, machines, etc and can adjust the supply as per the change in demand.
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