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    Economic decision making

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    Why do you believe that it is important for managers to understand both short run and long run supply and demand? Cite one hypothetical or real life example that illustrates your response.

    Under what circumstances would it be appropriate to resort to plant or company closings or layoffs? what is a good guideline to follow and explain how it may help a manager make this type of decision.

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    https://brainmass.com/economics/demand-supply/economic-decision-making-389411

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    Economic decision making in business

    Why do you believe that it is important for managers to understand both short run and long run supply and demand? Cite one hypothetical or real life example that illustrates your response.
    It is important for managers to understand both short and long run supply. The reason for this is that in the short run the manager can obtain supply at prices that are lower than average total costs but are higher than average fixed costs. However, in the long run the manager will not be able to get suppliers at such a price. On the other hand if the prices of a supply are high then it is likely that either new suppliers may enter the market in the long run or in the supplier may increase their production facilities so that they can increase their supplies. Real life ...

    Solution Summary

    Economic decision making is discussed very comprehensively in this explanation..

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