Which of the Following Is the Third Step in Deriving

question 26

Multiple Choice

Which of the following is the third step in deriving a flat long-run supply curve?

• A) market demand increases
• B) market supply increases until price returns to the original value
• C) firms earn extra-normal profits

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Definitions:

Negative NPV

A situation where the net present value (NPV) of an investment is less than zero, indicating it may lose money rather than gain.

Network Design

Network Design in supply chain management involves the strategic planning of a logistics network to optimize the flow of goods, information, and resources.

Chained Network

A complex series of interconnected nodes or entities, typically describing a logistics or delivery network.

Supply Disruptions

Interruptions in the flow of goods and materials from suppliers, which can impact production and distribution.