If the Typical Firm in a Perfectly Competitive Market Was

question 116

Multiple Choice

If the typical firm in a perfectly competitive market was depicted in the graph below, what would be most likely to occur?

• A)New firms would be likely to enter, increasing the market price.
• B)New firms would be likely to enter, decreasing the market price.
• C)Existing firms would be likely to exit, increasing the market price.
• D)Existing firms would be likely to exit, decreasing the market price.
• E)Firm would neither enter nor exit and the market price would remain unchanged.

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Definitions:

Ranking Method

An evaluation process where jobs or employees are compared to each other and ranked based on a predetermined criterion.

Talent Management

“A systemic attraction, identification, development, engagement/retention, and deployment of those individuals with high potential who are of particular value to the organization.”

High Potential

Refers to individuals within an organization identified as having the capability and aspiration to hold successive leadership positions within the company.

Rating Scale

A scale that requires the rater to provide a subjective evaluation of an individual’s performance.