A manufacturing firm that decides to add enough people to its workforce to operate around the clock is
A) making a short-run operating decision.
B) holding the proportion of labor to capital constant.
C) decreasing the average product of its fixed inputs.
D) making operating decisions along its planning horizon.
E) using its facilities inefficiently.

Question

Quizplus · Accepted Answer

Adding people to operate around the clock is a short-run operating decision, as it is a temporary adjustment to production levels that can be made in response to changing market conditions or other factors. The other answer choices are not applicable in this scenario.

A Manufacturing Firm That Decides to Add Enough People to Its