Which of the following is a decision a firm would make in the short run?
A) How much to pay in rent
B) How many employees to hire
C) How much to pay employees
D) How much to produce

Question

Quizplus · Accepted Answer

The decision of how much to produce is a short-run decision because it involves utilizing existing resources to produce a certain output level. In the short run, a firm cannot change its fixed inputs, such as its plant or equipment, but it can adjust its variable inputs, such as labor and materials, to increase or decrease production. Therefore, the decision of how much to produce is a key short-run decision that firms must make to maximize profits. The other options listed are typically considered long-run decisions as they involve making more significant changes to a firm's resources or structure, which cannot be easily adjusted in the short term.

Which of the Following Is a Decision a Firm Would