A Large Timber Farm Supplies Large Building Contractors with Plywood

Multiple Choice

A large timber farm supplies large building contractors with plywood and stick lumber. The managers of the timber farm have noticed that the demand for their timber tends to fluctuate with long- term business cycles and short- term changes in their timber production lead to sharp increases in their marginal cost. With this information, it is likely that _______- term forecasts are more valuable to the managers of the timber farm and the cost of _______- term forecasts are likely to exceed their benefit.

A) long; short
B) short; extended
C) short; long
D) long; extended