Which of the Following Issues May Not Require a Management

question 30

Multiple Choice

Which of the following issues may not require a management policy?

• A)To offer numerous or few employee benefits
• B)To establish a high- or low- safety stock of inventory
• C)To promote from within to or to hire from the outside
• D)To increase motivation
• E)To discourage insider trading

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Definitions:

MC = MR

A condition where marginal cost equals marginal revenue, often used to determine the profit-maximizing level of output in economic theory.

Monopolistically Competitive Industry

A market structure in which many firms sell products that are similar but not identical, allowing for competition based on quality, price, and marketing.

Output

The quantity of goods or services produced within a given time period.

Profit-Maximizing Rule

The principle that firms maximize profit by producing at the level where marginal revenue equals marginal cost.