A Competitive Price-Taker Market in Long-Run Equilibrium Is Described as Efficient

question 243

Multiple Choice

A competitive price-taker market in long-run equilibrium is described as efficient because firms

• A) produce at the low point on their average cost curve.
• B) produce where marginal cost yields a profit.
• C) earn no more than the cost of capital.
• D) are not profitable.

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Definitions:

Decentralized Authority

An organizational structure where decision-making and authority are distributed among various levels and departments rather than being concentrated at a central point.

Organic Designs

A flexible and informal approach to organizational structure that aims to promote creativity, empowerment, and adaptability.

Narrow Spans Of Control

An organizational structure where managers supervise a small number of subordinates, allowing for close supervision and more intensive management but potentially leading to longer chains of command and reduced autonomy for workers.

Wider Spans Of Control

A management structure where a single supervisor oversees a larger number of subordinates, promoting autonomy and reducing hierarchical layers.