If the Market Power of Firms Increases, What Happens in the AD/AS

question 77

Multiple Choice

If the market power of firms increases, what happens in the AD/AS model?

• A) Aggregate supply shifts to the left.
• B) Aggregate supply shifts to the right.
• C) Aggregate demand shifts to the left.
• D) Aggregate demand shifts to the right.

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Definitions:

Learning Organisation

A type of organization that actively seeks to acquire knowledge and adapt to change effectively through continuous improvement and employee engagement.

Continuous Improvement

An ongoing effort to enhance products, services, or processes to increase efficiency and quality.

Knowledge Management

The processes using intellectual capital for competitive advantage.

Intellectual Assets

Intangible resources and knowledge that a company possesses, which can include patents, trademarks, business methodologies, and other forms of intellectual property that provide a competitive advantage.