__________ Theories Indicate How Organizations Should Operate

question 79

Multiple Choice

__________ theories indicate how organizations should operate.

• A)Descriptive
• B)Prescriptive
• C)Operational
• D)Prophetic

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Definitions:

Market Supply Curve

A graph showing the total quantity of a good that producers are willing to sell at different prices.

Easy Entry

A characteristic of market structures where new competitors can easily enter the market without significant barriers or cost.

Constant-Cost Industry

An industry in which the costs of production, including input prices, do not change as the industry's output changes.

Economic Profits

Profits calculated after subtracting both the explicit and implicit costs from total revenues; also known as supernormal profits.