Figure 12-7 the Graphs in Figure 12-7 Represent the Perfectly

question 135

Multiple Choice

Figure 12-7 The graphs in Figure 12-7 represent the perfectly competitive market demand and supply curves for the apple industry and demand and cost curves for a typical firm in the industry.
-Refer to Figure 12-7.Which of the following statements is true?

• A)The current market price is $3 but the firm will be able to increase the price in the future.
• B)The current market price is $3 but the price will fall in the long-run as a result of a decrease in demand.
• C)The current market price is $3 but the price will fall in the long-run as new firms enter the market.
• D)The current market price is $3 but the price will increase in the future as the market demand increases.

Describe the characteristics of effective controls in organizations.

Grasp the concept of cost-effectiveness in control mechanisms.

Understand the necessity of flexibility in organizational controls.

Comprehend the importance of balancing cost versus benefit in effective control systems.

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Definitions:

Stable Demand

A market condition where the desire for a product or service remains consistent over a period of time.

Quality Competition

A market scenario where companies compete based on the quality of their offerings rather than on price alone, aiming to attract discerning customers.

Cartel Agreements

Formal arrangements between competing firms in the same industry to control prices, limit production, or divide markets to maximize profits and reduce competition.

Secretly Raising

Covertly increasing the level, amount, or degree of something, often done without public or open acknowledgment.