Contingency Plans Are Actions That Are Taken as an Alternative

question 115

True/False

Contingency plans are actions that are taken as an alternative to the firm's current business strategy.

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Definitions:

Deadweight Loss

A situation where inefficiency in the market leads to a loss of total social welfare, typified by a gap between the supply and demand curves.

Relatively Elastic

Describes a situation where the demand or supply for a good or service significantly changes in response to changes in price.

Elastic Supply

A situation in which the supply of a good or service changes significantly in response to changes in price.

Labor Supply

Refers to the total hours that workers are willing and able to work at a given wage rate, in a given period.