Which of the following is an example of a short-run decision?
A) An automobile manufacturing company considering whether to invest in robotic equipment to develop a more cost-effective production technique.
B) An automobile manufacturing company considering whether to expand its existing workforce.
C) A business consulting firm considering whether to open a new office in another city where many of its clients are based.
D) A business consulting firm considering whether to hire new consultants, move to a larger space, and purchase additional equipment.

Question

Quizplus · Accepted Answer

In the short run, firms make decisions that involve changes in variable inputs like labor, rather than fixed inputs like capital or infrastructure. Expanding the workforce is a short-run decision as it involves adjusting labor, a variable input.

Which of the Following Is an Example of a Short-Run