Which of the following is a long-run adjustment?
A)A new economics professor is hired on campus.
B)General Motors increases its orders for steel.
C)Microsoft cuts back its hiring of new graduates.
D)Glow Electric disassembles one of its nuclear power plants.
E)Texaco buys more crude oil to refine into gasoline.

Question

Quizplus · Accepted Answer

Disassembling a nuclear power plant is a long-run adjustment because it involves a significant change to the capacity of the firm, which cannot be easily reversed in the short-term. The other options are more short-term adjustments or do not involve a significant change in the capacity of the respective firm.

Which of the Following Is a Long-Run Adjustment