Economics: Principles, Problems, and Policies, 19th Edition

Published by McGraw-Hill Education
ISBN 10: 0073511447
ISBN 13: 978-0-07351-144-3

Chapter 7 - Businesses and the Costs of Production - Questions - Page 160: 3d

Answer

Adding a third shift of workers would register as a long run adjustment.

Work Step by Step

Adding a third shift of workers would imply that there were only two shifts of workers before, and thus adding a third shift would register as a significant increase in the number of workers in the company, regardless of the size of production. Assuming that worker contracts usually entail long-term contracts and adding an entire shift of workers would imply a large number of workers, this would register as a long run adjustment as it would be extremely costly to terminate so many workers early, and this would significantly impact the financial decisions of the company.
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