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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Definitions:

Employer

An employer is an individual or organization that hires and pays for the services of workers to perform specific jobs.

Collective Bargaining

The negotiation process between employers and a group of employees aimed at reaching agreements to regulate working salaries, working conditions, and other aspects of workers' compensation and rights.

Economic Disruption

An event or condition that causes significant changes in the performance of the economy, affecting production, consumption, and distribution.

Mediator

An impartial individual or party that intervenes in a dispute or negotiation to help the conflicting parties reach an agreement.