Which Is Most Likely to Be a Long-Run Adjustment for a Firm

question 11

Multiple Choice

Which is most likely to be a long-run adjustment for a firm that manufactures cars on an assembly-line basis?

• A)an increase in the amount of steel that the firm buys
• B)a decrease in the number of production workers in the assembly line
• C)a switch in production to a redesigned and retooled facility
• D)an increase in the number of shifts of workers from two to three

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Definitions:

Equilibrium

A state in a market where supply equals demand, and there is no external pressure to change the price or quantity.

Wheat Industry

A sector of the economy focused on the production, processing, and distribution of wheat and wheat-based products.

Partial Equilibrium Analysis

The process of examining the equilibrium conditions in individual markets and for households and firms separately.

Consumer Preferences

Refers to the subjective tastes and opinions that influence an individual's purchasing decisions.