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Fact 11.1.1
January 31, 2008: Starbucks will open 75 more stores abroad than originally predicted, for a total of 975.
February 25, 2008: For three hours on Tuesday, Starbucks will shut down every single one of its 7,100 stores so that baristas can receive a refresher course.
June 2, 2008: Starbucks replaces baristas with vending machines.
July 18, 2008: Starbucks is closing 616 stores by the end of March.
-Refer to Fact 11.1.1.The decisions made on ________ are short-run decisions because they ________.
A)January 31 and July 18;change the number of stores but not necessarily the number of employees
B)February 25 and June 2;change a variable factor of production but not a fixed factor of production
C)February 25, June 2, and July 18;deal with stores located in the United States
D)June 2 and July 18;are the more recent decisions
E)None of the above.

Question

Quizplus · Accepted Answer

The decisions made on February 25 and June 2 are short-run decisions because they change a variable factor of production (baristas) but not a fixed factor of production (stores), as opposed to the decision made on January 31, which changes the number of stores (a fixed factor of production). The decision made on July 18 is also a short-run decision as it involves closing stores, which is a short-term solution to financial problems.

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