Question

Suppose that a pharmaceutical company wants to grow in size but is constrained in the short run by its production capacity. What are some of the steps the company can take in the long run to overcome these constraints? Instructions: You may select more than one answer. A. Use cheaper materials B. Hire additional workers C. Build more factories. D. Expand the size of current factories.

Answer 1

Answer:

Build more factories, Expand the size of current factories, Use cheaper materials

Explanation:

Long run is not a precise period of time thereby meaning it could span from a year to eternity, which is adequate time to plan and grow. Building more factories will increase the growth in size for the capacity for  more production as well as expanding the size of the current factories. Due to the fact that there is a constraint of production capacity the company should look for alternatives in production technology in the long run so as to reduce cost of materials  but with the same production quality.

Answer 2

Answer: option b & d

Explanation:

Both of the options are dependent on size of demand for product.

After research is done to determine proposed size, using the rate of production to determine whether hiring additional workers with more shifts in the factory to increase production capacity to meet aim of growing in size .

Or expansion of facility to make room for new equipment to increase production capacity.