In Order to Create a Cost Advantage, the Cost of Acquiring

question 51

Multiple Choice

In order to create a cost advantage, the cost of acquiring low-cost productive inputs must be ________ the cost savings generated by these factors.

• A) greater than
• B) equal to
• C) less than
• D) greater than or equal to

---

Definitions:

Market Supply

The total amount of a product that sellers are willing and able to sell across all relevant price levels within a given market.

Long Run

A period in which all factors of production and costs are variable, allowing firms to adjust fully to market changes.

Long-run Equilibrium

The condition in which, considering full adjustments in the market, the quantity supplied equals the quantity demanded at the prevailing market price.

Perfectly Competitive

A market structure characterized by many small firms, identical products, free entry and exit, and full information, leading to firms being price takers.