An Alberta oil woman would like to increase the oil produced from her oil fields. Since it takes over a year to drill new wells, she opts instead for increasing labour and other variable inputs to produce more oil from existing wells. She is making a short-run production decision.

Question

Quizplus · Accepted Answer

The scenario describes a short-run production decision, where the oil woman is looking to increase production by using existing wells and increasing variable inputs, rather than investing in new wells which would take longer to drill.

An Alberta Oil Woman Would Like to Increase the Oil