Which of the following is the best example of a short-run adjustment?
A)A local bakery purchases another commercial oven as part of its capacity expansion.
B)Your local Walmart hires two more associates.
C)Smith University completed negotiations to acquire a large piece of land to build its new library.
D)Toyota builds a new assembly plant in Texas.

Question

Quizplus · Accepted Answer

Hiring two more associates is a short-run adjustment as it is a temporary solution to meet the immediate demand for labor. The other options involve long-term investments in capital and land, which are not short-run adjustments.

Which of the Following Is the Best Example of a Short-Run