Suppose a Firm Operates in the Short Run at a Price

question 32

Multiple Choice

Suppose a firm operates in the short run at a price above its average total cost of production. In the long run the firm should expect

• A)new firms to enter the market.
• B)the market price to rise.
• C)its profits to rise.
• D)Both b and c are correct.

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Definitions:

Stress Management

The process of using techniques and strategies to reduce or handle stress in personal or professional life.

Information Declines

The phenomenon where information loses its relevance, accuracy, or quality over time.

Self-Disclosure

The act of revealing personal information or feelings to others.

Organizational Culture

The shared values, beliefs, and practices that characterize an organization and influence its members' behavior.