If Competitive Industry Z Is Making Substantial Economic Profit, Output

question 185

Multiple Choice

If competitive industry Z is making substantial economic profit, output will

• A)fall in industry Z and firms will likely leave the market.
• B)fall in all industries except industry Z.
• C)expand in industry Z, as more resources will move to that industry.
• D)expand in industry Z, but no new firms will enter the market.

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Definitions:

Firm's Headquarters

The primary office or location where the central functions of an organization are coordinated and managed, often the base for executive decision-makers.

Continuous Improvement Approach

A long-term approach to work that systematically seeks to achieve incremental changes in order to improve efficiency and quality.

Team Effectiveness

A measure of a team's ability to achieve its goals and objectives, often influenced by factors like communication, leadership, and member roles.

Formal Retreat Approach

A strategic method where an organization steps back from its current operations to reassess goals, strategies, or processes in a structured setting.