This is a short-run decision. Labor is only one of many factors of production used by a firm. Hiring more labor is a short-run decision because other factors of production are not changed. Using more fuel. This is a short-run decision.
Fuel is only one of many factors of production used by a firm.
Using more fuel is a short-run decision because other factors of production are not changed. Building a second production facility. This is a long-run decision. A production facility includes all the factors of production used by a firm. Building a second production facility is a long-run decision because all factors of production are changed.