If You Were to Put the Following Effects of a Decrease

question 5

Multiple Choice

If you were to put the following effects of a decrease in demand into the sequence in which they occur,which would be the last one?

• A)The demand curve facing each individual firm shifts downward.
• B)Each firm reduces quantity supplied to the point where marginal cost equals its decreased marginal revenue.
• C)In the short run, the market price drops.
• D)Market output falls.
• E)A short-run loss forces some firms out of business in the long run.

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Definitions:

Long-term Direction

The strategic goals and visions set by an organization to guide its operations, development, and decision-making processes over an extended period.

Functional Strategy

A specific, detailed plan aimed at achieving objectives in a particular business area, supporting the overall business strategy.

Divisional Strategy

A strategic approach in which an organization is divided into semi-autonomous units, each focusing on a specific product line or market segment.

Corporate Strategy

The overall direction and scope of an organization over the long term, which achieves advantage in a changing environment through its configuration of resources.