The Santa Fe Spark Plug Company supplies spark plugs to automotive parts dealers. An increase in the demand for its product led Santa Fe to hire 150 new workers

Santa Fe also plans to expand the capacity of its plant but this project will take 2 years to complete. Which of the following statements is true?
A) The long run for Santa Fe is longer than 1 year.
B) The wages and benefits paid to the new workers are implicit costs.
C) In the short run Santa Fe's variable costs increase but its fixed costs decrease.
D) The short run for Santa Fe is 1 year.


A

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