In the Short Term, a Firm Can Sell Its Products

question 22

Multiple Choice

In the short term, a firm can sell its products ____________; however, at some point, the firm will be required to _______________.

• A) at low prices / make money or close up shop
• B) at above average prices / get competitive
• C) at high prices / become competitive or lose sales
• D) below its total cost / make a profit or quit the business
• E) competitive prices / become profitable

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Definitions:

Power Distance

A cultural dimension that reflects the degree to which less powerful members of a society accept and expect power to be distributed unequally.

Short-Termism

The focus on immediate gains or results at the expense of long-term strategy, sustainability, or investment. Often criticized in business and investment contexts.

Western Companies

Businesses that are based in or originated from Western countries, typically including countries in North America and Western Europe.

Revoking

The act of withdrawing, canceling, or annulling something previously granted, such as a privilege, right, or offer.