External Environment Refers to __________

question 90

Multiple Choice

External environment refers to __________.

• A) forces outside the organization that limit the organization's performance
• B) forces and institutions inside the organization that affect the organization's performance
• C) forces inside the organization that increase the organization's performance
• D) factors and forces outside the organization that affect the organization's performance

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Definitions:

Perfectly Competitive

A market structure characterized by a large number of small firms, a homogeneous product, free entry and exit, and perfect information.

ATC

Average Total Cost, which is the total cost per unit of output produced, calculated by dividing the total cost by the quantity of output.

Marginal Cost

Marginal cost refers to the additional total cost incurred from the production of an extra unit of a good or service.

Average Cost

The total cost divided by the quantity produced, reflecting the per-unit cost of production.