Ajax Corporation has recently finished building a new factory. They moved into the factory a month ago and found that it is the perfect size given the amount they want to produce. Ajax is operating in the
A) production time.
B) corporation time.
C) long run.
D) short run.

Question

Quizplus · Accepted Answer

The long run is a time period in which all inputs can be varied, and the firm can enter or exit the industry, as well as increase or decrease the size of its operation. Given that Ajax recently finished building a new factory, it is likely that they have made a long-term decision regarding the size and scale of their operations. Therefore, the answer is C) long run.

Ajax Corporation Has Recently Finished Building a New Factory