Refer to Figure 12-17. Which of the following statements is true?
A) The current market price is $3 but the firm will be able to increase the price in the future.
B) The current market price is $3 but the price will fall in the long run as new firms enter the market.
C) The current market price is $3 but the price will increase in the future as the market demand increases.
D) The current market price is $3 but the price will fall in the long run as a result of a decrease in demand.
B
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The output-capital ratio (Y/K) depends on the following four determinants. Which determinant of these four is most likely to be affected by government growth policy?
A) the nature of the production function B) the depreciation rate C) the growth rate of labor input D) the growth of capital per person
The five forces model is a framework
a. For increasing buyer force in the market b. For improving competition in the industry c. For analyzing the attractiveness of an industry d. Of matching resources and capabilities of the firm