If a Typical Firm in a Perfectly Competitive Industry Is

question 177

Multiple Choice

If a typical firm in a perfectly competitive industry is earning profits, then

• A)all firms will continue to earn profits.
• B)new firms will enter in the long run causing market supply to decrease, market price to rise, and profits to increase.
• C)new firms will enter in the long run causing market supply to increase, market price to fall, and profits to decrease.
• D)the number of firms in the industry will remain constant in the long run.

Understand the implications of fixed and variable costs in budgeting.

Calculate and analyze revenue and spending variances.

Prepare and interpret reports highlighting activity variances.

Develop skills in budget planning and adjustment based on actual activities.

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Definitions:

Management By Objectives

A management strategy model designed to enhance an organization's performance by establishing clear goals mutually agreed upon by both the management and the employees.

Ability Of Rewards

The potential of rewards to influence the motivation and behavior of individuals, based on their perceived value and appropriateness.

Learned Competencies

Skills and knowledge acquired through training and experience that contribute to a person's ability to perform certain tasks effectively.

Natural Talent

Inherent ability or aptitude in a particular activity or field without the need for prior learning or training.