Assuming That the Total Market Size Remains Constant, a Monopolistically

question 217

Multiple Choice

Assuming that the total market size remains constant, a monopolistically competitive firm earning profits in the short run will find the demand for its product decreasing in the long run because

• A)new entrants into the market are more likely to have cutting edge products.
• B)as the firm raises its price in the long run, it will lose some customers to new entrants in the market.
• C)some of its customers have switched to purchasing the products of new entrants in the market.
• D)its costs of production rises.

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Definitions:

Management by Objectives (MBO)

A management strategy focusing on defining specific objectives that management and employees agree to achieve, thus guiding activities and performance measurement.

Self-Appraisal

An evaluation process in which an individual assesses their own performance, strengths, and weaknesses.

Performance Results

The outcomes or achievements resulting from the execution of specific actions, tasks, or activities.

Management by Objectives (MBO)

A strategic management model focusing on setting and agreeing to specific objectives between management and employees to improve organization performance.