If TR > TC, a Firm Would ________ in the Short

question 163

Multiple Choice

If TR > TC, a firm would ________ in the short run and ________ in the long run.

• A) operate; expand
• B) operate; contract
• C) shut down; expand
• D) shut down; contract

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Definitions:

Corporate Strategies

High-level plans or frameworks developed by businesses to achieve their long-term objectives and to secure a competitive position in the market.

Retrenchment Strategy

A business strategy used to reduce the scale or scope of a company's operations to improve financial stability during tough times.

Recruiting

The process of identifying, attracting, and selecting candidates for employment to fill job vacancies.

Prospector Strategy

A business strategy focused on growth and innovation by exploring new markets and opportunities, often at the risk of higher instability and investment.