The Only Case Where Profit-Maximising Production Decisions by Firms Will

question 109

Multiple Choice

The only case where profit-maximising production decisions by firms will drive price to equal marginal cost are when:

• A)there are only two sellers
• B)many sellers sell products that are slightly differentiated
• C)there is only one seller
• D)many sellers sell products that are identical

---

Definitions:

External Environment

The factors outside an organization that can influence its operation, including economic, political, technological, and social conditions.

High-Performance Work Practices

Organizational practices that enhance the productivity and effectiveness of an organization and its employees.

Human Capital

The skills, knowledge, and experience possessed by an individual or population, viewed in terms of their value or cost to an organization or country.

Organizational Effectiveness

Measures how efficiently and effectively an organization meets its goals and satisfies its stakeholders.