Which of These Is a Potential Problem Associated with Using

question 71

Multiple Choice

Which of these is a potential problem associated with using only quantitative criteria for selecting strategies?

• A) Most quantitative criteria are geared to long-term objectives rather than annual objectives.
• B) Different accounting methods can provide different results on many quantitative criteria.
• C) Intuitive judgments are almost never used in deriving quantitative criteria.
• D) Quantitative criteria include human factors that may be underlying causes of declining performance.
• E) Quantitative criteria are not useful for comparisons of the firm's performance over different periods of time.

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Definitions:

Price Elasticity

A measure of how much the quantity demanded of a good responds to a change in the price of that good, reflecting consumers' sensitivity to price changes.

Monopolist

An entity or individual that has exclusive control over the supply of a good or service, enabling them to manipulate market prices.

Unregulated Monopolists

A single supplier in a market without government intervention or regulation, potentially leading to higher prices and lower outputs.