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Delvig [45]
3 years ago
8

A bakery is one of many that operate in the bread industry. The market demand curve for bread is downward-sloping. The bakery in

curs fixed costs and has an upward-sloping marginal cost curve. Which of the following statements is correct?
a.The bakery can raise the market price by constraining its production.
b.The bakery always makes a positive economic rent.
c.The bakery's supply curve is horizontal.
d.The bakery faces a flat demand curve.
Business
1 answer:
RoseWind [281]3 years ago
7 0

Answer: (d.)The bakery faces a flat demand curve.

Explanation:

The bakery faces a flat demand curve  because a firm in a perfectly competitive market is a price taker and the demand curve for a firm is equal to the price  the supply curve is a part of Marginal cost above Average variable cost , so the supply curve is upward sloping . The bakery is in the perfectly competitive market so it can earn positive, negative or zero economic profit in the short run and zero economic profit in the long run.

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Answer:

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3 years ago
The competitive strategy of a firm pursuing a "think global, act local" approach to strategy making: Select one: a. Entails litt
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Answer:

Option (d) is correct

Explanation:

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Thus, such a strategy encompasses same strategy in all countries with room for necessary modifications, so as to satisfy local buyers and serve local markets in the best possible manner.

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3 years ago
A company makes necklaces with attached letters. Department A manufactures the necklace chains and letters ahead of demand. Depa
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Answer:

Option (b) make-to-stock, assemble-to-order.

Explanation:

The reason is that the department A manufactures the product not B which means the make to stock is the primary function of Department A only. Once the necklaces are ready the Department B is ordered by the Department A to print names which is order dependent task and not associated with manufacturing (is associated with assembling). Hence the is the primary function of Department B is Assemble-to-order.

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Answer:

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