Question 1

Based on the activities below, determine whether they are short-run or long-run adjustments.

(a) Family Mart builds a new outlet in Penang.

(b) Harley-Davidson Corporation hires 200 more production workers.

(c) A farmer increases the amount of fertilizer used on his corn crop.

(d) An aluminium plant adds a third shift of workers.

Provide justifications for your answers. [20 marks]