When is it easier to make production decision in the
short run or in the long run ? why? ​

Answers

  • Réponse publiée par: ShairaGailSanchez

    answer: it is easier to make production decision in the short run than in the long run.

    explanation:

    in economics, when we say short run/long run production we do not mean time-period, instead it refers to the amount of production.

    short run production involves a fixed factor which could either be the company's building or its employee's salaries however in the long run, all factors of production including the company's building or the employee's salaries are all variable or changing as it involves massive production of the company's outputs or products.

    a company with a long run production usually manages two or more factories which definitely involves a lot of workers which keeps on changing (increasing or decreasing) overtime.

    by just thinking of that and considering that all other factors are equal (meaning, you won't consider other non economic factors and economic factors which are not mentioned) one can say that making production decision in the long run is definitely more complicated in the short-run as it requires more variable factors which are in massive numbers at the same time compared to the one in short run.

  • Réponse publiée par: hajuyanadoy

    Based on my perspective it easier to make production decisions in the long run, why? It is because you have a long span of time to gather, analyze and study the possible outcomes. Production decisions could much be easier if you're handful enough about the data that was presented to make a proper and precise decision so that you can avoid mistakes that can result to unwanted situations. Short run decision may have a lot of hole because it wasn't concrete enough for a possibility that they lack or missed something that can have a huge impact to future outcomes.

    Explanation:

Connaissez-vous la bonne réponse?
When is it easier to make production decision in theshort run or in the long run ? why? ​...