In 2008, Precision Pattern Interiors, Which Makes High-End Aircraft Interiors

question 256

Multiple Choice

In 2008, Precision Pattern Interiors, which makes high-end aircraft interiors, began a $1 million renovation of a building at the Hutchinson Air Base Industrial Tract south of Yoder, Kansas. The company also planned to add some $400,000 in new equipment and triple its Yoder work force. Why would the long run decisions be riskier than the short run decisions?

• A) because the firm has to live with the long run decisions for a long time
• B) because it is easier to sell the equipment than it is to lay off employees
• C) because the firm has to raise prices to purchase equipment
• D) because employees will be upset

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