Which of the following would NOT be a short-run decision for the firm?
A) Recall workers who were previously laid-off.
B) Have labor work two hours overtime each day in order to expand output
C) Build another wing on the plant in order to add a new assembly line.
D) Place an order with a supplier for additional raw materials.
Answer: C
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Total revenue is equal to quantity multiplied by average revenue.
Answer the following statement true (T) or false (F)
________-term forecasts are more valuable if a firm's demand changes very frequently and changes in the firm's output level have a ________ effect on its marginal cost.
A) Long; small B) Short; large C) Long; large D) Short; small
In 2016, interest payments on the national debt accounted for almost _____ of federal outlays
a. 7 percent b. 25 percent c. 14 percent d. 52 percent e. 40 percent
Suppose production in Spain and Portugal are not subject to the law of increasing cost and that Spain specializes in shoes while Portugal specializes in meat. If the opportunity cost of producing a pair of shoes in Spain is 3 pounds of meat, then we know that
a. Portugal consumes more meat than shoes b. Spain consumes more meat than shoes c. The opportunity cost of producing shoes in Portugal is more than 3 meats d. The opportunity cost of producing shoes in Portugal is less than 3 meats e. The opportunity cost of producing meat in Portugal must be 3 shoes