Which of the Following Is a Short-Run Decision

question 15

Multiple Choice

Which of the following is a short-run decision?

• A) Because of an increase in enrollment, the economics department hires two new professors.
• B) After a new classroom building is built, the economics department hires two new professors.
• C) Your college builds a new classroom building.
• D) The economics department buys new computers for the professors.

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Definitions:

Constant

A value that does not change.

Production Function

An economic model that describes the relationship between inputs used in production and the resulting output.

Double Its Inputs

The act of a firm increasing the amount of inputs used in production, such as labor and capital, by two times.

Level of Output

The quantity of goods or services produced by a firm or economy during a specific time period.