Which of the following would NOT be a short-run decision for the firm?
A) Recall workers who were previously laid-off.
B) Have labor work two hours overtime each day in order to expand output
C) Build another wing on the plant in order to add a new assembly line.
D) Place an order with a supplier for additional raw materials.

Question

Quizplus · Accepted Answer

Building a new wing on the plant requires a significant capital investment and a longer time frame than short-run decisions. Short-run decisions are typically made with the available resources and inputs, such as labor and raw materials, without long-term commitments. The other options listed involve short-term decisions that can be quickly adjusted to meet changing market conditions.

Which of the Following Would NOT Be a Short-Run Decision