In a Perfectly Competitive Market,the Type of Decision a Firm

question 11

Multiple Choice

In a perfectly competitive market,the type of decision a firm has to make is different in the short run than in the long run.Which of the following is an example of a perfectly competitive firm's short-run decision?

• A) the profit-maximizing level of output
• B) how much to spend on advertising and sales promotion
• C) what price to charge buyers for the product
• D) whether or not to enter or exit an industry
• E) whether or not to change its plant size

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Definitions:

Stamina

Resistance to fatigue and illness; vigor, strength, and endurance to continue even in the face of difficult and trying conditions; a leadership quality required to create, advance, and sustain a vision.

Leadership Quality

The set of characteristics or attributes that are considered desirable in a good leader, including integrity, decision-making ability, and empathy.

Sustain a Vision

The ongoing effort to keep an organization's long-term objectives and goals clearly defined and communicated to all stakeholders.

Leader-initiated

Actions or directives that are started or established by a leader in order to guide or influence the behavior and outcomes of a group or organization.