Suppose There Is a Large and Permanent Increase in the Demand

question 153

Multiple Choice

Suppose there is a large and permanent increase in the demand for a good produced in a competitive industry. We should expect that:

• A) existing firms will face lower sunk costs.
• B) competition in the industry will decrease.
• C) existing firms' average cost curves will shift upward.
• D) firms will enter the industry because the market price will rise.

Analyze the relationship between organizational goals and the division and coordination of labour.

Explain the concept of functional departmentation and its implications for professional development and career ladders.

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Identify and describe the processes involved in reflex actions.