Which of the Following Would Be Classified as a Short-Run

question 39

Multiple Choice

Which of the following would be classified as a short-run decision?

• A)A firm's decision to decrease the amount of electricity used in day-to-day operations by encouraging employees to adopt conservation strategies, e.g., shut off lights when leaving a room.
• B)A restaurant's decision to increase the number of patrons it can accommodate by adding on a new dining room.
• C)A trucking firm's decision to move to a smaller facility.
• D)A university's decision to add a new residence hall.

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Definitions:

Cash Flow

The broad sum of financial activities entering and exiting a business, influencing its ability to maintain liquid assets.

Stockholders

Individuals or institutions that own shares in a corporation, giving them ownership rights and potential financial benefits.

Cash Flow

The full extent of monetary movement into and out of a commercial entity, affecting its capacity to liquidate quickly.

Stockholders

Individuals or entities that own shares in a corporation, holding a stake in the company's equity.