Why would a business consider both short-term and long-term cost functions in planning?
What will be an ideal response?
Short-term planning allows a business to focus on immediate results, while long-term planning allows a business to strategize for the future, without the constraint of fixed costs. Because short-term planning is designed to focus on the present and near future, it does not address long-term concerns such as strategy, competition, and technology. Those are addressed in long-term profit maximization.
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Suppose that Germany, France, Estonia, and India all have the same production possibilities, illustrated in the figure above. Based on the production points in the figure, which country is most likely to expand its PPF to PPF1?
A) France B) France and Germany equally C) India D) Germany E) Estonia
The strengthening of the dollar between 1980 and 1985 contributed to a ________ in American competitiveness, putting pressure on the Fed to pursue a more ________ monetary policy
A) decrease; contractionary B) increase; expansionary C) increase; contractionary D) decrease; expansionary
It is easy to sign contracts for gym membership, but if one rarely goes to the gym a gap exists between _______ and behavior
a. Resources b. Values (hope) c. Attitudes d. Ethics
Jeans in general have fewer close substitutes than a specific brand of jeans. Therefore, the demand for jeans in general will be ________ than the demand for a specific brand of jeans.
A. more elastic B. more unit elastic C. less elastic D. less inelastic