In 2008, Precision Pattern Interiors, which makes high-end aircraft interiors, began a $1 million renovation of a building at the Hutchinson Air Base Industrial Tract south of Yoder, Kansas. The company will also add some $400,000 in new equipment and triple its Yoder work force. Which of Precision Pattern Interiors' decisions is a short run decision?
A) triple its Yoder work force
B) $1 million renovation of a building at the Hutchinson Air Base Industrial Tract
C) $400,000 in new equipment purchases
D) All of these decisions are short run decisions.

Question

Quizplus · Accepted Answer

Increasing the workforce is a short-run decision because it involves adjusting variable inputs, while renovations and equipment purchases are long-term investments.

In 2008, Precision Pattern Interiors, Which Makes High-End Aircraft Interiors