The Tool That Is Useful in Documenting the Current Process

question 92

Multiple Choice

The tool that is useful in documenting the current process is a

• A)control chart.
• B)Pareto chart.
• C)check sheet.
• D)flowchart.
• E)cause-and-effect diagram.

Explain how equilibrium price and quantity in the market are determined and affected by shifts in supply and demand.

Recognize the effects of price ceilings and price floors on market equilibrium.

Understand the implications of income changes on the demand for goods.

Describe how related goods affect each other's demand through changes in price.

---

Definitions:

Long-Run Economic Profits

Profits that persist over time after all costs, including opportunity costs, are taken into account, indicating a competitive advantage.

Industry Equilibrium

A state where industry supply equals demand, leading to stability in prices and quantities produced and consumed.

Economic Profits

The difference between total revenue and total costs, including both explicit and implicit costs, indicating a firm's surplus beyond the normal profit level.

Price-Searcher Market

A market structure where sellers have the ability to control or influence prices due to a lack of perfect competition.