Consider an accounting firm which hires workers to enter data into a computer program.Which of the following would be considered a short run decision?
A)The firm would like to hire ten more workers for a weekend shift.
B)The firm is considering an investment in additional computers.
C)The firm would like to build its own facility.
D)The firm might purchase new computer software that would require some new computer hardware as well as extensive training for workers.
E)All of the above decisions could be made in the short run.

Question

Quizplus · Accepted Answer

Hiring ten more workers for a weekend shift would be a short run decision as it involves an immediate increase in labor input to meet temporary demand.

Option B, investing in additional computers, could be either a short run or long-run decision depending on the nature of the investment and the expected time period for returns.

Option C, building its own facility, would be a long-run decision as it involves a substantial capital investment and a long time frame for returns.

Option D, purchasing new computer software, could be either a short run or long-run decision depending on the extent of training required and the time period for the software to start generating returns.

Therefore, option A is the best choice for a short run decision.

Consider an Accounting Firm Which Hires Workers to Enter Data