In the IT Department of a Large Corporation, Gary Is

question 104

Multiple Choice

In the IT department of a large corporation, Gary is responsible for purchasing software for all of the departments within the company. Which organizational factor has the biggest impact on his buying decisions?

• A) How a downturn in company revenues might affect his budget
• B) An upcoming release of a new version of software commonly used in the company
• C) The documentation he's required to provide when seeking approval from his supervisor before making a purchase
• D) How persuasive Stephanie--the cute software sales rep--was in making her most recent presentation

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Definitions:

Minimum AVC

The lowest point of the average variable cost curve where each unit of production is at its cheapest.

Short Run

A period during which at least one factor of production is fixed, leading to limitations in output adjustment.

Long Run

A period of time in which all factors of production and costs are variable, allowing for full industry adjustment to changes.

Minimum ATC

This refers to the lowest point on the average total cost curve, representing the most efficient scale of operation for a firm.