An investment decision involves choosing
A)A rate of output and is a short-run decision.
B)A rate of output and is a long-run decision.
C)The amount of plants and equipment and is a short-run decision.
D)The amount of plants and equipment and is a long-run decision.

Question

Quizplus · Accepted Answer

An investment decision typically involves choosing the amount of plants and equipment, which are long-term capital assets. This decision involves a significant commitment of resources and has long-term implications for the firm's production capacity and competitiveness, making it a long-run decision. Therefore, choice D is the best answer.

An Investment Decision Involves Choosing