In Long­run Equilibrium with Trade, Losses from Import

question 85

Multiple Choice

In long­run equilibrium with trade, losses from import
Competition will force some firms to ______________,
Increasing demand for the remaining firms' output, which will
Then cause their demand curves to become ______________,
Due to the increased variety of products from
_______________.

• A)raise prices; steeper; new firms entering the industry
• B)leave the industry; flatter; foreign firms
• C)lower prices; more inelastic; new firms entering the industry
• D)lay off workers; more elastic; the research and development departments in firms

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Definitions:

Modular Organization

Refers to an organizational structure that is divided into separate, interchangeable units or modules, each with a specific function.

Core Competencies

are the unique capabilities or advantages that give an organization a competitive edge in the market or industry.

Autonomy

The degree to which a job provides an employee with discretion and independence to schedule their work and determine how it is done.

Ambidexterity

The ability of an organization to simultaneously explore new possibilities while exploiting existing competencies and resources effectively.