Which is most likely to be a long-run adjustment for a firm that manufactures cars on an assembly-line basis?
A)an increase in the amount of steel that the firm buys
B)a decrease in the number of production workers in the assembly line
C)a switch in production to a redesigned and retooled facility
D)an increase in the number of shifts of workers from two to three

Question

Quizplus · Accepted Answer

A long-run adjustment for a firm often involves significant changes in the production process, such as a switch to a redesigned and retooled facility. This allows the firm to improve efficiency, adopt new technologies, and increase production capacity, which are not achievable through short-term adjustments like changing the amount of inputs or the number of shifts.

Which Is Most Likely to Be a Long-Run Adjustment for a Firm