Which of the following represents a long-run decision for the firm? a. rehiring workers who were previously laid off. b. determining what price to charge for a given level of output. c. deciding how much output to supply to the market at the current market price. d. building another wing on the plant in order to add a new assembly line. answer. (d. building another wing on the plant in order to add a new assembly line.)
Which of the following represents a long-run decision for the firm? a. rehiring workers who were previously laid off. b. determining what price to charge for a given level of output. c. deciding how much output to supply to the market at the current market price. d. building another wing on the plant in order to add a new assembly line. answer. (d. building another wing on the plant in order to add a new assembly line.)
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Which of the following represents a long-run decision for the firm?
a. rehiring workers who were previously laid off.
b. determining what price to charge for a given level of output.
c. deciding how much output to supply to the market at the current market price.
d. building another wing on the plant in order to add a new assembly line.
answer. (d. building another wing on the plant in order to add a new assembly line.)
Please help me explain this questions. Thanks in advance
Expert Solution
Step 1
Long-run is the time period in which all the factors of production and all cost are variable. Generally long-run decisions are more time consuming than a short run decisions.
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