Producers need to focus on
A) both the long run and the short run
B) only the long run
C) only the short run

Question

Quizplus · Accepted Answer

Producers need to focus on both the long run and the short run. In the short run, they need to make sure that they are able to produce goods efficiently and at a low cost. This may require them to maximize the use of existing resources and operate at full capacity. In the long run, they need to invest in new technology, research and development, and human capital to improve productivity and maintain a competitive advantage. Focusing on only one of these timeframes can lead to shortcomings in the other.

Producers Need to Focus on