Which of the Following Is a Major Advantage of the Market

question 104

Multiple Choice

Which of the following is a major advantage of the market organization?

• A) The company is organized around the needs of specific customer segments.
• B) The company exploits bleeding-edge technologies to keep ahead in the market.
• C) The company has a flat organizational structure.
• D) The company allows its salespeople to settle into a specific territory.
• E) The company caters to a single, small market segment.

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Definitions:

Long-Run Average Total Cost

The cost per unit of output incurred when all factors of production are variable, and scale of production can be changed.

Output

The amount of products or services produced by a company, industry, or economic system.

Total Fixed Cost

The sum of all costs that do not change with output level, including rent, salaries, and insurance.

Short Run

A period in economic analysis during which at least one input, such as plant size or capital, is fixed, limiting the ability to adjust to demand changes.