If Microsoft is determining whether to build a new plant in Southern California or in New Mexico, it is making a(n) ________ decision.
A) immediate-run
B) long-run
C) short-run
D) variable-input

Question

Quizplus · Accepted Answer

Microsoft is considering building a new plant, which is a long-term decision. Southern California or New Mexico may have different costs, labor markets, and regulations that will affect the company's production and profits in the future. A long-run decision allows Microsoft to consider all of these factors and adjust its capital investments accordingly. The other options, immediate-run, short-run, and variable-input decisions, refer to more specific and short-term choices, such as increasing production by adding more workers or buying more materials.

If Microsoft Is Determining Whether to Build a New Plant