The long run is a period of time where all factors of production are variable.

The law of demand states that, assuming other things remain constant, there is an inverse relationship between the price and the quantity demanded of the good itself, ceteris paribus

Law of diminishing marginal returns states that as extra units of the variable factor are applied to a fixed factor, the output from each additional unit of the variable factor will eventually diminish

Less economically developed countries (LEDCs) – characteristics include low levels of GDP per capita, high levels of poverty, relatively large agricultural sector, large informal sectors, high birth rates (population growth rates), poor infrastructure, underdeveloped capital markets (banking sector), heavily indebted, unable to access international markets, over-specialized on a narrow range of products, small tax base, dependency on primary sector exports