All of the Following Are Long-Run Changes, Except

question 57

Multiple Choice

All of the following are long-run changes, except

• A)an industry expanding as more firms enter it.
• B)a firm moving into larger production facilities to expand production.
• C)some firms deciding to leave an industry and the industry contracts.
• D)a firm producing more output by acquiring more raw materials for its existing factory.

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Definitions:

Corporation Power

The legal and operational capabilities granted to a corporation by law, allowing it to conduct business, enter contracts, and own assets.

Minority Shareholders

Individuals or entities that own less than 50% of a company's shares, thereby having less control over company decisions.

Supermajority Voting

The board needs more than a simple majority of directors to vote in favor of an action before the action is possible; for example, it may require a 2/3 or unanimous vote prior to action.

Managerial Discretion

The degree of freedom managers have in making decisions without needing direct approval from higher-ups.