Figure 13-2 Suppose a Firm Operating in a Competitive Market Has the Has

question 218

Multiple Choice

Figure 13-2
Suppose a firm operating in a competitive market has the following cost curves:
-Refer to Figure 13-2.If the market price is P4,in the short run the firm will earn

• A) positive economic profits.
• B) negative economic profits but will try to remain open.
• C) negative economic profits and will shut down.
• D) zero economic profits.

Understand the distinction between programmed and nonprogrammed decisions.

Recognize the characteristics and examples of crisis problems.

Identify appropriate and inappropriate strategies for crisis management.

Differentiate between structured and unstructured problems.

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Definitions:

Profit-sharing Plans

Compensation strategies that distribute a portion of an organization's profits among its employees, often as a form of incentive or bonus.

Wealth Redistribution

The transfer of income, wealth, or property from certain individuals or groups to others by means of a social mechanism, such as taxation, charity, welfare, public services, land reform, monetary policies, or confiscation.

Firm Level

Pertains to policies, operations, or characteristics specific to an individual company or organization, as opposed to industry-wide or macroeconomic levels.

Profit-sharing Plan

Profit-sharing Plan is a company program that provides employees with a share in the profits of the business, usually distributed annually or quarterly.