Refer to the Information Provided in Figure 9

question 110

Multiple Choice

Refer to the information provided in Figure 9.3 below to answer the questions that follow. Figure 9.3
-Refer to Figure 9.3. In the short run this firm should ________ and in the long run this firm should ________, if economic conditions do not change.

• A) shut down; exit the industry
• B) exit the industry; shut down
• C) continue to produce where MC = MR; expand
• D) continue to produce where MC = MR; shut down

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Definitions:

Legitimate Power

A form of power derived from having a recognized and official position within an organization, allowing the holder to influence others.

Information Flow

The movement of information within an organization, from the collection, processing, and dissemination of data, to effectively support decision-making and organizational activities.

Legitimate Power

The authority that a leader or an organization holds, which is recognized and accepted by others as rightful and appropriate.

Formal Authority

A type of power derived from the position or rank one holds within an organization, entitling them to enforce rules and make decisions.