PracticeQuiz content is free on an ad-supported model.

Unfortunately, we can't support ad blocker usage because of the impact on our servers. If you'd like to continue, please disable your ad blocker and reload page.

Reload page

Case Interview Prep

Category - Economics

Start a Study Session Sign up for Question of the Day

Echo Energies is a gas company facing increasing shipment costs in the new fiscal year. To maximize its profits in the short run when costs are less than market prices, they should:

increase production
decrease production
layoff employees
renegotiate loans

Explanation

Answer: A - The company should increase production.

Key Takeaway: A short run is a decision making period for a company during which at least one variable is held constant. To maximize its profits in a short run when costs are less than market prices, a company should increase production.

Was this helpful? Upvote!

Start a Study Session Sign up for Question of the Day

Case Interview Prep

Top questions

Related questions

Most popular on PracticeQuiz

Ad-Blocker not supported

Case Interview Prep

Top questions

Related questions

Most popular on PracticeQuiz