If an Industry Has Constant Marginal and Average Costs, Any

question 35

Multiple Choice

If an industry has constant marginal and average costs, any shift in demand will eventually

• A) result in a higher equilibrium price.
• B) be met by a smaller change in quantity supplied.
• C) be met by an equal change in quantity supplied, and equilibrium price will not change.
• D) make economic profits zero in the short run.

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Definitions:

Strategic Marketing Process

A systematic approach to identifying and evaluating market opportunities, developing marketing strategies, and implementing and monitoring marketing plans.

Planning Phase

The initial stage in a process or project where goals are defined, strategies are developed, and resources are allocated.

Situation (SWOT) Analysis

A strategic planning tool used to identify and understand Strengths, Weaknesses, Opportunities, and Threats related to business competition or project planning.

Marketing Program

A comprehensive plan that integrates various marketing strategies and tools to achieve business targets and objectives.