If the Demand for a Product Increases in an Increasing

question 102

Multiple Choice

If the demand for a product increases in an increasing cost industry, as the market adjusts in the long run,

• A) price will rise.
• B) the firm's per-unit costs will increase.
• C) the firm's per-unit costs will fall.
• D) the market price will return to its initial position.

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Definitions:

Organizational Learning

The process through which an organization accumulates, disseminates, and uses knowledge to improve its effectiveness and achieve its goals.

Self-Governing Teams

Teams that operate autonomously, making decisions and managing workflows without external supervision.

Boundedness

The quality of being limited or restricted in some way.

Stability

The state or quality of being resistant to change or fluctuation, often used to describe economic, social, or environmental conditions.