Question

Which is most likely to be a long run adjustment or a firm that manufactures golf carts on an assembly line basis?
(a) an increase in the amount of steel the firm buys
(b) a reduction in the number of shifts of workers from three to two
(c) a change in the production managers of the assembly line
(d) a change from the production of golf carts to motorcycles

Answer 1

Answer:

(d) a change from the production of golf carts to motorcycles

Explanation:

In the long run, a manufacturing entity should be considering options that will increase their profitability.  To be more profitable , the firm must increase its output and its market share.  A firm manufacturing golf carts should diversify into sectors that provide broader markets.

From the option provided, a firm manufacturing golf carts is most likely adjust to the production of motorcycles in the long run. Golf carts are used in golf clubs only to transport golfers and their equipment. They have a restricted market, unlike motorcycles, which can be used by a bigger percentage of the population. Adjusting to motorcycles presents an opportunity for potential growth in market share and profitability.