Use the Information Below to Answer the Following Question

question 100

Multiple Choice

Use the information below to answer the following question.
Fact 11.1.2 A Bakery on the Rise
Some 500 customers a day line up to buy Avalon's breads, scones, muffins, and coffee. Staffing and management are worries. Avalon now employs 35 and plans to hire 15 more. Its payroll will climb by 30 percent to 40 percent. The new CEO has executed an ambitious agenda that includes the move to a larger space, which will increase the rent from $3,500 to $10,000 a month.
Source: Fortune, April 14, 2008
-Refer to Fact 11.1.2. Avalon's decision to ________ is a short-run decision. Avalon's decision to ________ is a long-run decision.

• A)serve 500 customers a day; hire 15 more people
• B)move to a larger space; hire 15 more people
• C)hire 15 more people; serve 500 customers a day
• D)hire 15 more people; move to a larger space
• E)pay more for rent; have a larger payroll

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Definitions:

Consumerism

The protection or promotion of the interests of consumers, often emphasizing the importance of producing and consuming goods that fulfill genuine needs.

Grassroots Movement

A movement driven by the politics of a community or society's lowest level, often advocating for social or political change from the ground up.

Conspicuous Consumption

The purchase and use of expensive goods and services to display wealth and social status rather than for practical and necessary reasons.

Sustainable Growth

The rate of growth that an organization can maintain without running into problems, by balancing income with spending in long-term plans.