Which of the Following Conditions Does Not Characterize Long-Run Competitive

question 176

Multiple Choice

Which of the following conditions does not characterize long-run competitive equilibrium?

• A)Economic profit is zero.
• B)Price is greater than marginal cost.
• C)No firm has an incentive to change its plant size.
• D)No firm has an incentive to produce more or less output.

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Definitions:

Environmental Scan

The process of systematically examining external elements affecting an organization, to identify opportunities and threats that could influence future strategies.

Strategic Planning Process

A methodical approach for setting organizational goals, determining actions to achieve those goals, and mobilizing resources to execute the actions.

SWOT Analysis

A strategic planning tool used to identify an organization's Strengths, Weaknesses, Opportunities, and Threats, helping in the development of strategic plans.

Core Competencies

Fundamental strengths and strategic advantages of an organization or individual that distinguish them from competitors.