Which of the Following Is Most Likely a Long- Run

question 48

Multiple Choice

Which of the following is most likely a long- run decision for a firm?

• A)The number of workers to hire.
• B)The hours a store should stay open.
• C)How many warehouses to build.
• D)The price at which to sell the product.
• E)The amount of inventory to stock.

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Definitions:

Fixed Costs

Costs that do not vary with the volume of production or sales, such as rent, salaries, and insurance.

Demand

The desire and ability of consumers to purchase goods or services at a given price.

Fixed Costs

Costs that do not vary with the level of output or sales, such as rent, salaries, and insurance premiums, remaining constant regardless of business activity.

Marginal Costs

The expense incurred by manufacturing an extra unit of a product or service.