A Firm's Decision to Expand the Size of Its Production

question 15

True/False

A firm's decision to expand the size of its production facility would be considered a short-run decision so long as the expansion can be completed in less than a year.

---

Definitions:

Unilateral Contract

An agreement in which a promise by one party is exchanged for an act performed by the other party.

Executed

A term applied to a contract in which all of the terms have been fully performed.

Implied-In-Law

A legal obligation arising not from explicit agreement but from a duty inherent in social or legal traditions.

Without Reserve

An auction term indicating that an item will be sold to the highest bidder regardless of the price, without any minimum bid restriction.