Figure 12-13 -Refer to Figure 12-13.Suppose the Prevailing Price Is P₁ and Price

question 122

Multiple Choice

Figure 12-13

-Refer to Figure 12-13.Suppose the prevailing price is P₁ and the firm is currently producing its loss-minimizing quantity.If the firm represented in the diagram continues to stay in business, in the long-run equilibrium

• A)it will reduce its output to Q₀ and face a price of P₀.
• B)it will continue to produce Q₁ but faces the higher price of P₂.
• C)it will expand its output to Q₂ and face a price of P₂.
• D)it will expand its output to Q₃ and face a price of P₁.

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Definitions:

Value System

A set of consistent personal or cultural beliefs and attitudes that guide the behavior and judgments of an individual or group.

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The ability to influence the personality, growth, or actions of an individual or entity.

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Political skill is the ability to effectively understand others at work and to use such knowledge to influence others to act in ways that enhance personal and/or organizational objectives.

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Refers to the political factors, including laws, government agencies, and pressure groups that influence or limit various organizations and individuals in a society.