Figure 13-12 Figure 13-12 Shows Short-Run Cost and Demand Curves for a and Demand

question 180

Multiple Choice

Figure 13-12

Figure 13-12 shows short-run cost and demand curves for a monopolistically competitive firm in the market for designer watches.
-Refer to Figure 13-12.If the diagram represents a typical firm in the designer watch market, what is likely to happen in the long run?

• A)Some firms will exit the market causing the demand to increase for firms remaining in the market.
• B)The firms that are making losses will be purchased by their more successful rivals.
• C)Inefficient firms will exit the market and new cost-efficient firms will enter the market.
• D)Firms will have to raise their prices to cover costs of production.

Recognize the advantages and potential pitfalls of virtual teams in organizational settings.

Differentiate between permanent and temporary work groups within an organization.

Identify and explain the functional silos problem and its impact on organizational effectiveness.

Understand the role and benefits of quality circles in improving organizational processes.

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Definitions:

Receivables Period

The amount of time it takes for a company to collect payments owed by its customers after a sale has been made.

Selling Price

The amount of money charged for a product or service, or the sum obtained from the sale of an asset.

Receivables

Money owed to a company by customers for goods or services that have been delivered or used but not yet paid for.

Ending Cash Balance

The amount of cash a company has available at the end of a financial period.