A Local Playground Equipment Company Plans to Operate Out of Its

question 238

Multiple Choice

A local playground equipment company plans to operate out of its current factory, which is estimated to last 30 years. All cost decisions it makes during the 30-year period

• A)are long-run decisions.
• B)are short-run decisions.
• C)involve only maintenance of the factory.
• D)are zero because the cost decisions were made at the beginning of the business.

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Definitions:

Economic Expansions

Phases in the business cycle where the economy grows, marked by increased production, employment, and consumer spending.

World War II

A global conflict that lasted from 1939 to 1945, involving most of the world's nations, including all of the great powers, organized into two opposing military alliances.

Hyperinflation

An extremely high and typically accelerating inflation rate, causing a rapid erosion of currency's real value.

Deflation

A decrease in the general price level of goods and services, often indicating an economic decline.