14. Which of the following companies has the longest short run?
A. A bakery
B. A band
C. A phone app company
D. A tulip grower

Question

14. Which of the following companies has the longest short run?
A.    A bakery
B.    A band
C.    A phone app company
D.    A tulip grower

BlackTom AI · Accepted Answer

To evaluate which entity has the longest short run, we need to consider how long it takes each to adjust all of its inputs in response to economic changes.
Option A: A bakery. In the short run, a bakery typically has fixed capital like ovens and fixtures, but can adjust labor and some ingredients relatively quickly. The adjustment period is relatively short compared to agricultural cycles.
Option B: A band. A band can adjust labor (members) and practice schedules fairly rapidly, so the short-run adjustment period is also generally short, not exceptionally long.
Option C: A phone app company. Software firms can often vary inputs like development staff and features quickly, so their short-run period tends to be short as well, given scalable technology and flexible staffing.
Option D: A tulip grower. Tulips are tied to agricultural cycles and perennial growth processes that require planting, growing, and harvesting cycles that cannot be sped up arbitrarily. The time to complete a full growing cycle constitutes a lengthy period before any production decisions translate into output, making its short-run adjustment horizon longer than the others.
In light of these considerations, the tulip grower (D) has the longest short run because agricultural production tied to biological growth takes the most time to adjust relative to the other options, which rely on more flexible inputs or shorter-cycle processes.

ECNM1116.36617.202230 Practice Quiz Businesses and the Costs of Production

14. Which of the following companies has the longest short run? A. A bakery B. A band C. A phone app company D. A tulip grower

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