Asked by Royal Empress on Jun 10, 2024
Verified
Which of the following is a short-run adjustment?
A) A local bakery hires two additional bakers.
B) Six new firms enter the plastics industry.
C) The number of farms in the United States declines by 5 percent.
D) BMW constructs a new assembly plant in South Carolina.
Short-Run Adjustment
The process by which businesses alter their production levels or inputs in response to short-term changes in market conditions.
Local Bakery
A place of business that specializes in producing and selling bread, cakes, and other baked goods to consumers within a specific area.
Plastics Industry
An economic sector involved in the production, distribution, and recycling of plastic materials and products.
- Ascertain the influences that dictate a corporation's short-run and long-run decisions regarding operations.
Verified Answer
VV
Vanessa ValdovinosJun 16, 2024
Final Answer :
A
Explanation :
Hiring two additional bakers is a short-run adjustment because it involves a change in the variable inputs (labor) without altering the fixed inputs (size of the bakery, equipment).
Learning Objectives
- Ascertain the influences that dictate a corporation's short-run and long-run decisions regarding operations.