Figure 10.7 -Refer to Figure 10.7.Suppose the Prevailing Price Is $20 and Price

question 68

Multiple Choice

Figure 10.7

-Refer to Figure 10.7.Suppose the prevailing price is $20 and the firm is currently producing 1,350 units.In the long-run equilibrium, the firm represented in the diagram

• A)will continue to produce the same quantity.
• B)will reduce its output to 1,100 units.
• C)will reduce its output to 750 units.
• D)will cease to exist.

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Definitions:

Felt Deprivation

A consumer’s perceived deficiency in their possessions or experiences, compared to a standard or to peers, which can influence buying behavior.

Needs

Refers to the essential requirements that individuals or organizations strive to fulfill, such as food, shelter, security, or business resources.

Influence Demand

The process of shaping consumer’s desire for a product or service through marketing strategies, economic factors, and social trends.

Marketing Mix

The combination of factors that a company can control to influence consumer's purchasing decisions, traditionally identified as product, price, place, and promotion.