Echo Energies is a gas company facing increasing shipment costs in the new fiscal year. To maximize its profits in the short run when costs are less than market prices, they should:
A)Increase production
B)Decrease production
C)Layoff employees
D)Renegotiate loans

Question

Quizplus · Accepted Answer

The company should increase production.
Key Takeaway: A short run is a decision making period for a company during which at least one variable is held constant. To maximize its profits in a short run when costs are less than market prices, a company should increase production.

Echo Energies Is a Gas Company Facing Increasing Shipment Costs