Figure 14-6 ​

question 121

Multiple Choice

Figure 14-6
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-Refer to Figure 14-6. If the figure in graph (a) reflects the long-run equilibrium of a profit-maximizing firm in a competitive market, the figure in graph (b) most likely reflects

• A)perfectly inelastic long-run market supply.
• B)perfectly elastic long-run market supply.
• C)the entry of firms into the industry when some resources used in production are available only in limited quantities.
• D)the fact that zero profits cannot be sustained in the long run.

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Definitions:

Formal Channels

These are officially established and structured paths for communication or information flow within an organization.

Tangible Assets

Physical and material assets that have intrinsic value, such as machinery, buildings, and inventory.

Intangible Assets

Non-physical assets that have value, such as patents, trademarks, copyright, and goodwill.

Sales Potential

An estimate of the maximum total revenue a product or service can generate under ideal conditions.