If a Competitive Industry Is Characterized by Increasing Cost,which of the Following

question 17

Multiple Choice

If a competitive industry is characterized by increasing cost,which of the following will occur in response to an unexpected increase in demand?

• A)New firms will enter the industry.
• B)Economic profit will remain zero.
• C)Input prices will remain constant.
• D)The price of the product will remain unchanged.

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Definitions:

Quality Control

A process by which entities review the quality of all factors involved in production to ensure standards are met.

W. Edwards Deming

An American engineer, statistician, professor, author, lecturer, and management consultant known for his work in quality management.

Operations Management

The administration of business practices aimed at ensuring maximum efficiency within a company, focusing on managing processes, materials, and people effectively.

Service Attribute

A feature or characteristic that adds value to a service, influencing customer satisfaction and preferences.