Which of the following scenarios best illustrates a firm operating in the economic 'short run', as opposed to the 'long run'?
A software firm increases its weekly output by hiring 15 contract developers while maintaining its existing office space and cloud hosting infrastructure limits.
An e-commerce retailer doubles its warehouse floor space, leases a new fleet of delivery vans, and doubles its total warehouse workforce.
A chemical processing plant experiences constant returns to scale after doubling its industrial autoclaves, factory land area, and workforce.
An agricultural enterprise transitions its operations by purchasing 500 additional hectares of arable land and installing a completely new irrigation network.
156 exam-style questions on AQA A Level Economics 1.4 Production, costs and revenue, covering 1.4.1 Production and productivity, 1.4.2 Specialisation, division of labour and exchange, 1.4.3 The law of diminishing returns and returns to scale (A-level only), 1.4.4 Costs of production, 1.4.5 Economies and diseconomies of scale, 1.4.6 Marginal, average and total revenue, 1.4.7 Profit, and 1.4.8 Technological change (A-level only). Each one has a worked solution and a mark scheme showing where the marks go.