If Microsoft is thinking about building a new factory, it is making a
A) Long-run decision that will definitely enhance its profit.
B) Long-run decision that may enhance its profit.
C) Short-run decision that will definitely enhance its profit.
D) Short-run decision that may enhance its profit.

Question

Quizplus · Accepted Answer

Building a new factory requires a significant investment of resources, time, and money. Therefore, this is a long-run decision for Microsoft. However, it is uncertain whether building a new factory will definitely enhance its profit. There are several factors to consider, such as market demand, the cost of production, and competition. Hence, the best choice is B, a long-run decision that may enhance its profit.

If Microsoft Is Thinking About Building a New Factory, It