Which of the Following Statements Is True

question 42

Multiple Choice

Which of the following statements is true?

• A) Competitive firms will respond less to changes in output prices over the long run than they will over the short run because short-run marginal cost is lower than long-run marginal cost.
• B) Competitive firms will respond more to changes in output prices over the long run than they will over the short run because long-run marginal cost is lower than short-run marginal cost.
• C) Competitive firms will respond less to changes in output prices over the long run than they will over the short run because long-run marginal cost is lower than short-run marginal cost.
• D) Competitive firms will respond more to changes in output prices over the long run than they will over the short run because short-run marginal cost is lower than long-run marginal cost.

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Definitions:

Self-Serving Ethical Principles

Moral rules or guidelines that individuals adopt, primarily to benefit themselves, often at the expense of others.

Distribution Of Power

The way power is allocated or spread among various parties or individuals within an organization, society, or group, affecting how decisions are made.

Effectiveness

The degree to which something is successful in producing a desired result; efficiency.

Tactics

Specific actions or strategies designed to achieve a short-term goal.