A Competitive Firm Has Been Selling Its Output for $20

question 362

Multiple Choice

A competitive firm has been selling its output for $20 per unit and has been maximizing its profit, which is positive. Then, the price falls to $18, and the firm makes whatever adjustments are necessary to maximize its profit at the now-lower price. Once the firm has adjusted, its

• A)quantity of output is lower than it was previously.
• B)average total cost is lower than it was previously.
• C)marginal cost is higher than it was previously.
• D)All of the above are correct.

Acknowledge the cognitive abilities and personality traits that contribute to an individual's creativity.

Understand the concept of loose-tight leadership in managing creative processes.

Understand the BCG business portfolio analysis framework and its application.

Classify strategic business units (SBUs) according to the BCG matrix quadrants.

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Definitions:

Legal Consequences

The potential legal penalties or effects that may follow from actions or violations of laws and regulations.

Order-Fill Rate

A metric that measures the efficiency of a company's inventory management by calculating the percentage of customer orders fulfilled from stock on hand.

Metropolitan Area

A densely populated urban core and its less populated surrounding territories, sharing industry, infrastructure, and housing.

White-Collar Crimes

White-collar crimes are financially motivated, nonviolent crimes committed by business and government professionals, often involving fraud or embezzlement.