Which of the following are short-run and which are long-run adjustments?

Question

A. Wendy’s builds a new restaurant.
B. IMB hires 200 more software engineers.
C. A farmer increases the amount of fertilizer used on his corn crop.
D. An Alcoa aluminum plant adds a third shift of workers.


which and why?

Answer 1

(a) Long run, (b) Short run, (c) Short run, (d) Short run

Wendy's is long run simply due to the fact that you cannot throw up a restaurant within the month. Everything else can be adjusted for within a month--short run. Albeit, it would most likely take IBM longer than a month to get 200 engineers hired and working. It still could technically happen in a very short time frame--much shorter than putting up a brick and mortar.

Answer 2

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