Consider an Industry That Is in Long-Run Equilibrium

question 423

Multiple Choice

Consider an industry that is in long-run equilibrium. An increase in demand leads to no change in the price of the good. We know that this is

• A) a decreasing-cost industry.
• B) a constant cost industry.
• C) an increasing-cost industry.
• D) not a competitive industry.

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Definitions:

Flattening Hierarchy

The process of reducing levels of management or structure in an organization to improve communication, decision-making speed, and employee involvement.

Self-Directed Work Teams

Groups of employees who manage their workload and tasks without direct supervision, often responsible for planning, execution, and monitoring.

Matrix Level

Refers to the arrangement or level of an individual within a matrix organization, which combines functional and divisional structures for more flexibility and collaboration.

Two Bosses

A situation in a matrix organization where an employee is answerable to two supervisors, each with their own set of expectations and tasks.