A Production Decision Involves Choosing

question 98

Multiple Choice

A production decision involves choosing

• A)The amount of plants and equipment and is a short-run decision.
• B)The amount of plants and equipment and is a long-run decision.
• C)A rate of output and is a short-run decision.
• D)A rate of output and is a long-run decision.

---

Definitions:

Pure Competition

A market structure characterized by a large number of small firms selling identical products, with no single seller having a significant influence on market price.

Oligopoly

A market structure characterized by a small number of large firms dominating the market, leading to limited competition.

Mutually Cancelling Advertising

Mutually cancelling advertising refers to a situation where the competitive advertising efforts of firms negate each other's impact, leading to no significant change in market share.

Economic Efficiency

A state in which resources are allocated in the most beneficial way, maximizing output while minimizing waste and inefficiency.