Investopedia (reference below) defines long run as a period of time in which all factors of production and costs are variable.
Investopedia goes on to say:
“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. Additionally, whereas firms may be a monopoly in the short-term they may expect competition in the long-term.
“… In the long run, they can either expand or reduce production capacity or enter or exit an industry based on expected profits. In the short run, barriers to entry prevent competitors from quickly entering a market. In the long run, however, competitors may enter or exit an industry depending on the levels of profit previously seen by companies operating in that industry.”
Atlas topic, subject, and course
Investopedia, Long Run, at http://www.investopedia.com/terms/l/longrun.asp, accessed 19 May 2016.
Page created by: Ian Clark, last modified 19 May 2016.