All the Following Explain Price Stickiness Except

question 12

Multiple Choice

All the following explain price stickiness except

• A) firms choose not to adjust prices until they can assess if changes in sales are temporary or permanent.
• B) the more firms produce, the lower the average cost of production. Therefore, firms are willing to not raise prices as long as they can sell more.
• C) firms may be concerned that consumers may be angered by price increases.
• D) firms may be concerned that their rivals may not match their price increases.

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Definitions:

Internal Recruiting

Is the process of looking inside the organization for existing qualified employees who might be promoted to higher-level positions.

Stagnation

A period of slow economic growth or decline, often marked by high unemployment and underused production capacity.

Creativity

The ability to produce original and valuable ideas or solutions.

Hierarchical Organizational Structure

A system in which authority and responsibility are clearly outlined, forming a pyramid-like configuration where each level controls the level below.