Which Firms Appear to Do Best Through and After a Recession

question 43

Multiple Choice

Which firms appear to do best through and after a recession?

• A)Those in a monopoly position
• B)Those with the agility to adjust operations quickly and early, with enough strength to invest at the worst point of the recession
• C)Those who drastically downsize, and cut wages
• D)Those with the highest social legitimacy

---

Definitions:

Market Failure

A circumstance where goods and services are distributed ineffectively by a market operating without restrictions, commonly leading to a decline in social welfare.

Allocate Resources

The process of distributing available resources among various competing needs and wants in order to achieve desired outcomes efficiently and effectively.

Efficiently

Attaining the highest level of efficiency by minimizing unnecessary effort or cost.

Externality

A financial consequence related to a product or service that results in advantages or expenses for individuals not involved in making decisions about the amount of production or consumption.