Assuming Long- Run External Diseconomies Exist, When Demand Increases in a Perfectly

question 147

Multiple Choice

Assuming long- run external diseconomies exist, when demand increases in a perfectly competitive market, in the long run the price of the product _______ the initial price (before the increase in demand) and the quantity _______.

• A) rises above; increases
• B) equals; increases
• C) equals; decreases
• D) falls below; decreases

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Definitions:

Johnson's Rule

A scheduling technique that minimizes the total elapsed time required to complete a group of jobs on two machines or in two process stages.

Work Centres

Locations within a manufacturing facility where specific production activities or operations are carried out, often involving particular machines or groups of workers.

Alpha

In finance, the excess return of an investment relative to the return of a benchmark index. In statistics, the probability of a Type I error in hypothesis testing.

Beta

In finance, a measure of the volatility, or systematic risk, of a security or a portfolio in comparison to the market as a whole.