Which of the following would most likely reach the long run the soonest?
A)a nuclear power plant
B)a college
C)a lumber mill
D)a shopping mall
E)a hot dog stand

Question

Quizplus · Accepted Answer

A hot dog stand has a relatively low initial cost and can start generating revenue quickly. It is also a small operation, meaning that it can quickly achieve its optimal efficiency. As a result, it would likely reach the long run (when all inputs are variable and the firm can adjust all of its factors of production) sooner than the other options, which are larger and more capital-intensive operations with higher barriers to entry.

Which of the Following Would Most Likely Reach the Long