When Price Is Below Average Variable Cost, a Firm in a Competitive

question 451

Multiple Choice

When price is below average variable cost, a firm in a competitive market will

• A)shut down and incur fixed costs.
• B)shut down and incur both variable and fixed costs.
• C)continue to operate as long as average revenue exceeds marginal cost.
• D)continue to operate as long as average revenue exceeds average fixed cost.

Analyze the patterns of job movement within an organization and the factors that influence these movements.

Appreciate the chain effects resulting from transfers or promotions within an organization.

Understand the importance and methods of training for technical skills in various geographic contexts.

Recognize the benefits of internal and external workforce sourcing and the factors affecting these choices.

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Definitions:

Exit-Voice-Loyalty-Neglect

A framework describing how people respond to dissatisfaction within organizations, where exit means leaving the organization, voice means attempting to change the conditions, loyalty means remaining loyal despite issues, and neglect involves reducing work effort.

Previous Experiences

Past events or occurrences that an individual has encountered, which influence their perceptions, behaviors, and decision-making in the present.

Organizational Commitment

The level of engagement and loyalty an employee feels towards their company or workplace.

Contractual Obligation

A legal agreement between parties that outlines duties, rights, and responsibilities.