The contingency approach to management is based on the idea that there is no single best way to manage. Contingency refers to the immediate contingent circumstances. Effective organizations must tailor their planning, organizing, leading, and controlling to their particular circumstances.
Answer:
a. increase price in the short run but not in the long run.
Explanation:
The firms don't use resources that are available in limited quantities. So, as firm output increases, they can use resources in higher quantity but at the same price.
Therefore, as quantity demanded increases, the firms can supply higher quantity without any increase in resource cost. So, price increase in short run but not in the long term.
Answer:
Comparative Advantage: A country has a comparative advantage in producing a commodity if the opportunity cost of producing that commodity in terms of other commodity is lower in that country as compared to the other country.
For determining comparative advantage, countries compare their good's opportunity cost with the other country's goods opportunity cost.
