In a Perfectly Competitive Market, If a Resource That One

question 113

Multiple Choice

In a perfectly competitive market, if a resource that one firm utilizes is superior to resources used by other firms, and, as a result, lowers unit costs for the firm, that firm is likely to earn __________ in the short run. In time, however, the firm's __________ curve will rise to reflect the superior-quality of the resource it employs and the firm will then earn __________.

• A)normal profit; ATC; positive economic profit
• B)positive economic profit; ATC; normal profit
• C)positive economic profit; marginal revenue; zero profit
• D)losses; ATC; positive economic profit

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Definitions:

Learning Curve

The concept that describes how new skills or knowledge can be acquired more efficiently over time with practice and experience.

Direct Labor Costs

Expenses related to the work of employees who are directly involved in the production of goods or the delivery of services.

Portfolio Analysis

A systematic process of evaluating the elements of a portfolio, assessing their performance, risk, and interrelations, to inform strategic decisions and optimize returns.

Spend Map

A visual representation that depicts an organization's expenditure across different departments, suppliers, or categories, often used to identify cost-saving opportunities.