Answer to Question #279203 in Marketing for Lisa

Question

Is mpala (pty) ltd producing in the short-run or long-run? Justify your answer

Answer 1

The impala (pty) Ltd is producing in the long run because the platinum producers experience a low margin for over 6 months in case of the low platinum price and increased cost. Furthermore, many firms were forced to reduce their production capacity, and other companies with low profits were announced to exit, while others put on maintenance.