When demand for a firm's product decreases, the firm can take a number of steps to adjust costs and quantities supplied to the market. Some are listed below. Which actions are shor tun and which are long run?
Explain your reasoning.
a. layoff 25% of the firm's existing employees.
b. Declare bankruptcy and sell all of the firm's plant and equipment.
c. require mangement personnel to take a significant cut in pay.
d. furlough employees for 3 days each month
e. move to a smaller production facility