Once a Manager Has Identified a Problem, He or She

question 42

Multiple Choice

Once a manager has identified a problem, he or she can generate alternatives to that problem. After this is done, the manager does which of the following?

• A) implements the solution
• B) evaluates the decision he or she made
• C) brainstorms with his or her team
• D) selects the best alternative

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Definitions:

Explicit Costs

Direct, out-of-pocket payments for resources employed by firms for production, such as wages or rent.

Accounting Profit

The net income a company reports on the financial statements, calculated by subtracting total expenses from total revenues.

Economic Profit

The variance between what a business earns in total and what it spends, counting both actual expenses and notional costs.

Efficient Output

The level of production where the maximum possible output is achieved with the given resources and technology, minimizing waste and cost.