Assume a factory that currently employs 25 workers and owns a factory with 10,000 square feet of floor space is considering doubling the size of its factory.Economists would classify this as:
A)a short-run decision.
B)a long-run decision.
C)neither a short-run nor a long-run decision.
D)both a short-run and a long-run decision.

Question

Quizplus · Accepted Answer

Doubling the size of the factory is a major investment that involves significant long-term planning and financial commitment. This decision will have implications for years to come and will require substantial resources. Therefore, economists would classify this as a long-run decision.

Assume a Factory That Currently Employs 25 Workers and Owns