Figure 9.14 -Refer to Figure 9.14.If the Diagram Represents a Typical Firm

question 339

Multiple Choice

Figure 9.14
-Refer to Figure 9.14.If the diagram represents a typical firm in the market,what is likely to happen to its average cost of production in the long run?

• A) It will probably fall since the firm must be cost efficient to remain competitive.
• B) It will probably fall since the firm will be selling less than its current amount.
• C) It will probably rise since the firm will be producing less than its current amount.
• D) It will probably rise since its long-run demand is likely to be higher.

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Definitions:

Improvements Needed

A phrase commonly used to indicate areas or aspects that require enhancements, optimizations, or corrections.

Strategic

Pertaining to the identification of long-term or overall aims and interests and the means of achieving them, often within organizational or national contexts.

Performance Management

A systematic process by which an organization involves its employees in improving effectiveness towards the achievement of the company's goals and objectives.

Business Objectives

The specific goals that an organization strives to achieve over a set period, guiding its operations and strategic direction.