Asked by
Andrea Tellez
on Nov 04, 2024
Verified
A firm that is earning positive profits in the short run has an incentive to ________ its scale of operation in the long run.
A) expand
B) contract
C) not change
D) encourage another firm to expand
Scale Of Operation
Refers to the size at which a particular business or factory operates, considering factors like output, capacity, or the amount of work it can perform.
- Differentiate the strategical choices made by firms in the context of short-run and long-run planning in perfectly competitive markets.
- Interpret the outcomes of changes in market prices on the firm's production and profit levels.
Verified Answer
DB
Learning Objectives
- Differentiate the strategical choices made by firms in the context of short-run and long-run planning in perfectly competitive markets.
- Interpret the outcomes of changes in market prices on the firm's production and profit levels.