In Long-Run Equilibrium in Perfect Competition

question 22

Multiple Choice

In long-run equilibrium in perfect competition:

• A)marginal cost is greater than price.
• B)marginal cost is equal to price.
• C)marginal cost is less than price.
• D)the relationship between marginal cost and price is not predictable.

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Definitions:

Functional Departmentation

Employees with closely related skills and responsibilities are assigned to the same department.

Product Departmentation

Departments are formed on the basis of a particular product, product line, or service.

Coordination Problems

Difficulties that arise in the process of organizing people or groups to allow for harmonious action or function.

High Differentiation

describes an organization with a complex structure where different units or departments specialize in particular tasks or functions, often resulting in a variety of perspectives and approaches.