Suppose, as a Result of a Long-Run Adjustment in a Perfectly

question 83

Multiple Choice

Suppose, as a result of a long-run adjustment in a perfectly competitive industry to a change in demand, price and output both fell.Therefore, demand must have __________ in this __________ industry.

• A)fallen; increasing cost
• B)fallen; decreasing cost
• C)increased; increasing cost
• D)increased; decreasing costs
• E)decreased; constant cost

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Definitions:

Short-Term Demand Forecasts

Predictions about future customer demand over a short period, usually up to one year, critical for successful inventory and production planning.

JIT

Just-In-Time, a production strategy that aims to reduce times within the production system as well as response times from suppliers and to customers.

Upstream

In the context of supply chain, refers to the activities or processes involved in obtaining raw materials or components required for manufacturing.

JIT

Just-In-Time; an inventory management strategy that minimizes inventory and maximizes efficiency by receiving goods only as they are needed in the production process.