Use the Figure Below to Answer the Following Questions

question 85

Multiple Choice

Use the figure below to answer the following questions. Figure 11.4.3
-Refer to Figure 11.4.3,which shows the cost curves and marginal revenue curve of a firm in a perfectly competitive market.Firms are

• A)making an economic profit,and some firms leave the market.Market supply decreases.
• B)making an economic profit,and some firms enter the market.Market supply increases.
• C)incurring an economic loss,and some firms leave the market.Market supply decreases.
• D)incurring an economic loss,and some firms enter the market.Market supply increases.
• E)incurring an economic loss,but since they are covering average variable cost,no one will exit the market in the long run.

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Definitions:

Business Strategy

A plan of action or policy designed to achieve a major or overall aim in business.

Role Ambiguity

A situation where an individual lacks clear information about their job responsibilities, expectations, and the scope of their role.

Open Systems

Organizations or entities that interact with their environment, exchanging resources, influences, and outputs with their external context.

Internal Component

This refers to the inner beliefs, values, or attitudes that influence an individual's behavior or perception of the self and others.