If Tesla is thinking about building a new factory,it is making a
A)Long-run decision that will definitely enhance its profit.
B)Long-run decision that may enhance its profit.
C)Short-run decision that will definitely enhance its profit.
D)Short-run decision that may enhance its profit.

Question

Quizplus · Accepted Answer

Building a new factory requires a significant investment and involves a long-term commitment. Therefore, it is a long-run decision. However, the decision to build a new factory may or may not enhance Tesla's profit depending on various factors such as demand for Tesla's products, competition, cost of production, etc. Hence, option B is the most appropriate choice.

If Tesla Is Thinking About Building a New Factory,it Is