A sandwich shop has six months left on its lease to its storefront and equipment and currently employs three workers who work on an on-call basis,with no contract.Ingredients are bought daily.How long is the long run for the sandwich shop?

Question

Quizplus · Accepted Answer

In this scenario, the long run is the point at which all inputs become variable, meaning the sandwich shop would have the option to renegotiate their lease, hire contracted workers, and implement a more strategic ingredient purchasing process. Given that the shop still has six months left on its lease and currently does not have contracted workers, it is safe to assume that the long run would not begin until after the lease expires and changes can be made to the shop's operations. Therefore, option A is the correct answer.

A Sandwich Shop Has Six Months Left on Its Lease