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8 February, 17:36

Boeing announces it will increase population of its 737 jetliners at its Renton, Washington factory from the current 42 per month to 52 per month in 2018. This is a ___ decision

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  1. 8 February, 18:15
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    Answer: Short run decision

    Explanation: In economics, the time period of a business organization in which one factor of production is fixed while the others are variable is called short run decisions.

    In short run period, if the firm wants to increase its output potentially it can do so by increasing the variable factors amount.

    As in the given case, Boeing is increasing its jetliners by increasing the time period, that is a variable factor.

    Hence we can conclude that it is a short run decision.
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