In the Long Run, If Price Is Less Than Average

question 42

Multiple Choice

In the long run, if price is less than average cost

• A)there is an incentive for firms to exit the market.
• B)there is profit incentive for firms to enter the market.
• C)the market must be in long-run equilibrium.
• D)there is no incentive for the number of firms in the market to change.

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Definitions:

International Firm

A company that engages in business activities across national borders.

Extension

In marketing, refers to expanding a product line or brand by introducing additional items or categories.

Marketing Strategy

The means by which a marketing goal is to be achieved, usually characterized by a specified target market and a marketing program to reach it.

Global Brand

A brand marketed under the same name in multiple countries with similar and centrally coordinated marketing programs.