The Long-Run Supply Curve Under Pure Competition Will Be

question 111

Multiple Choice

The long-run supply curve under pure competition will be:

• A) downsloping in a decreasing-cost industry and upsloping in an increasing-cost industry.
• B) horizontal in a constant-cost industry and downsloping in an increasing-cost industry.
• C) vertical in a constant-cost industry and upsloping in a decreasing-cost industry.
• D) upsloping in an increasing-cost industry and vertical in a constant-cost industry.

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Definitions:

Strategic Management Approach

A management framework that involves setting objectives, analyzing competitive environments, assessing internal organization, evaluating strategies, and ensuring management oversight of strategy execution.

Cost Leadership

A business strategy focused on achieving the lowest operational costs within an industry, thereby allowing the company to offer its products or services at a lower price than its competitors.

Small Company

A business with a limited number of employees and relatively low volume of sales compared to larger enterprises.

Porter's Generic Strategies

A framework developed by economist Michael Porter that outlines three potential strategies—cost leadership, differentiation, and focus—for achieving competitive advantage.