What's true about both the short-run and long-run in terms of production and cost analysis?
a. In the short-run, one or more of the resources are fixed
b. In the long-run, all the factors are variable
c. The time horizon determines whether or not an input variable is fixed or not
d. The law of diminishing returns is based in part on some factors of production being fixed, as they are in the short run.
e. All of the above
QUESTION 2Annual budgeting of production goals of a division within a firm
a. is an accounting mechanism to plan for the costs and revenues over a time period
b. increase the burden on the division when goals rise
c. can lead to accumulated inventory when the goals of an upstream division are arbitrarily set too high
d. all of the above
QUESTION 3The resource-based view indicates that firms exhibit different performances within the same industry because
a. there is less buyer power
b. there are economies of scale present
c. some firms have superior resources
d. there is less competition
QUESTION 4The marginal product is the incremental change in total output that can be obtained from the use of one more unit of an input in the production process, while holding constant all other inputs.
a. True
b. False
Indicate whether the statement is true or false
QUESTION 5In an M-form organization
a. The number of divisional conflicts are reduced
b. Decision making speed increases
c. Customer retention tends to increase
d. All of the above
QUESTION 6Apple continues to be innovative to ensure that their demand curve stays or becomes
a. More inelastic
b. More elastic
c. Unitary elastic
d. None of the above
QUESTION 7The marginal product is the incremental change in total output that can be obtained from the use of one more unit of an input in the production process, while varying all other inputs.
a. True
b. False
Indicate whether the statement is true or false
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