Ajax Corporation has recently finished building a new factory. They moved into the factory a month ago and found that it is the perfect size given the amount they want to produce. Ajax is now operating in the
A) production time.
B) corporation time.
C) long run.
D) short run.

Question

Quizplus · Accepted Answer

Ajax is now operating in the long run because they have completed building a new factory, which is a long-term investment, and have found it to be the perfect size for their current production needs. In the long run, firms have more flexibility to adjust their inputs and make investments that can improve their efficiency and profitability.

Ajax Corporation Has Recently Finished Building a New Factory