Use the Figure Below to Answer the Following Questions

question 97

Multiple Choice

Use the figure below to answer the following questions.

Figure 12.4.2
-Refer to Figure 12.4.2, which shows the cost curves and marginal revenue curve of a firm in a perfectly competitive market. In the long run,

• A)firms that remain in the market will expand production.
• B)market demand will increase.
• C)market supply will decrease.
• D)firms will exit the market.
• E)firms that remain in the market will decrease production.

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Definitions:

Analyzer Strategy

A business approach that balances maintaining current markets and products while seeking opportunities for innovation.

Strategic Alternative

Various options or plans that an organization can pursue to achieve its goals and objectives.

Strategic Failure

The inability of an organization to achieve its strategic objectives due to flawed planning, execution, or external factors.

The Reactor

A strategy used by organizations that only respond to environmental changes or pressures rather than anticipating them or actively seeking to influence them.