Which period of production has all factors being variable?

In the context of production periods in economics, the long run is characterized by all factors of production being variable. This means that a firm can adjust all inputs, including capital and labor, to increase or decrease output. In this period, firms can invest in new technologies, alter the size of their facilities, and modify their labor force without any constraints.

The long run contrasts with the short run, where at least one factor of production is fixed, usually capital. In the short run, firms cannot change the size of their production facilities or the amount of equipment they use, restricting their ability to respond to changes in market demand.

Understanding that in the long run, all inputs can be varied allows firms the flexibility to optimize production processes and achieve economies of scale. This period is essential for planning future growth and adjusting to changes in industry conditions without being limited by current resources or capabilities.