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Answer :
Final answer:
Starbucks deciding to open 75 more stores abroad likely involved planning for variable factors, making it a long-run decision. Deciding to close 616 stores by the end of next March, which likely involved response to fixed factors, can be considered a short-run decision. Therefore, option 2 is most accurate.
Explanation:
In choosing between the given options for the situations of Starbucks' decisions to open or close stores, we should consider the concepts of short-run and long-run in managerial economics. The short-run is a period of time where at least one factor of production is fixed, while the long-run is a period where all factors are variable. The decision to open 75 more stores abroad sounds like a long-run decision
because it probably involved planning for the variable factors like finding locations, lease agreements, manpower, and supply chain organization. On the other hand, the decision to close 616 stores by the end of next March seems like a short-run decision, as it's a more immediate action likely in response to fixed factors (perhaps economic conditions or performance issues). Therefore, Solution 2 seems most accurate: Starbucks opening 75 more stores abroad is a long-run decision, and Starbucks closing 616 stores is a short-run decision.
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