Suppose a Competitive Market Is Comprised of Firms That Face

question 232

Multiple Choice

Suppose a competitive market is comprised of firms that face identical cost curves. The firms experience an increase in demand that results in positive profits for the firms. Which of the following events are then most likely to occur? (i)
New firms will enter the market.
(ii)
In the short run, price will rise; in the long run, price will rise further.
(iii)
In the long run, all firms will be producing at their efficient scale.

• A)(i) and (ii) only
• B)(i) and (iii) only
• C)(ii) and (iii) only
• D)(i), (ii) and (iii)

Understand the importance of involving management and building support for change initiatives.

Identify the stages involved in the organizational development process.

Grasp the concept of incremental change and its application in organizational settings.

Understand Kurt Lewin's model of change (unfreeze, change, refreeze) and its application in organizational development.

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Definitions:

Conceptual Replications

Replications of studies using different methods or measures to verify the underlying concept or hypothesis.

Random Sample

A subset of individuals chosen from a larger set (population) where each individual has an equal chance of being selected.

Nonequivalent Groups

Groups in an experimental design that are not created equal, often due to the absence of random assignment.

Replication

The process of repeating an experiment or study to confirm the results.