Which of the following would be classified as a short-run decision?
A)A firm's decision to decrease the amount of electricity used in day-to-day operations by encouraging employees to adopt conservation strategies, e.g., shut off lights when leaving a room.
B)A restaurant's decision to increase the number of patrons it can accommodate by adding on a new dining room.
C)A trucking firm's decision to move to a smaller facility.
D)A university's decision to add a new residence hall.

Question

Quizplus · Accepted Answer

A firm's decision to decrease electricity usage through conservation strategies is a short-run decision because it is a temporary adjustment that does not require a significant change in the firm's operations or assets. The other options involve more long-term structural changes, such as adding a new dining room or building a new residence hall.

Which of the Following Would Be Classified as a Short-Run