Because Economic and Competitive Environments Frequently Change, Organizations Should

question 32

Multiple Choice

Because economic and competitive environments frequently change, organizations should

• A) set a long-term plan and stick to it.
• B) develop contingency plans.
• C) save time and money by cutting back on planning.
• D) eliminate any long-term strategic plans, but devise short-term tactical plans and update them once a year.

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Definitions:

Corn Farmers

Agricultural producers who specialize in the cultivation of corn crops.

Long-Run Equilibrium

A situation in economic analysis where all inputs can be adjusted, and firms have no incentive to enter or exit the industry.

Economic Profit

The total revenue minus total costs, including both explicit and implicit costs.

Competitive Market

A market structure characterized by a large number of sellers and buyers, where no single party can dictate prices or market conditions.