In which case will the transition from short run to long run involve the shortest chronological time?
A)a service that provides temporary secretaries to companies
B)an automobile factory
C)a farm
D)an electric utility

Question

In which case will the transition from short run to long run involve the shortest chronological time?
A)a service that provides temporary secretaries to companies 
B)an automobile factory 
C)a farm 
D)an electric utility

Quizplus · Accepted Answer

The transition from short run to long run is shortest for a service that provides temporary secretaries as the firm can quickly adjust its labor inputs by hiring or laying off temp workers without having to make substantial changes to their physical capital. In contrast, an automobile factory, a farm, and an electric utility require longer periods of time to adjust their physical capital such as machinery and power plants, making the transition from short run to long run longer.

In Which Case Will the Transition from Short Run to Long