Which of the following is a short-run decision for a firm?
A) Downsizing the firm's manufacturing plant
B) Expanding the firm's distribution network of long-haul freight trucks and smaller delivery trucks.
C) Firing workers
D) Investing in a new addition to the firm's manufacturing plant

Question

Quizplus · Accepted Answer

Firing workers is a short-run decision because it can quickly reduce labor costs and improve the firm's financial situation in the short term. Downsizing the manufacturing plant and investing in a new addition are long-term decisions because they involve significant capital investments and take time to implement. Expanding the distribution network can be considered a medium-term decision because it requires planning and investment, but can also provide benefits in the short run.

Which of the Following Is a Short-Run Decision for a Firm