While Assessing the Practicality of Alternatives, Managers Must Decide Whether

question 46

True/False

While assessing the practicality of alternatives, managers must decide whether they have the capabilities and resources required to implement the alternative, and they must be sure that the alternative will not threaten the attainment of other organizational goals.

Identify the relationship between marginal cost, average variable cost, average total cost, and their intersections.

Determine the implications of changes in output on total costs, marginal costs, and average costs.

Comprehend the impact of fixed and variable costs on total cost, and how each changes with output levels.

Analyze cost behavior in the short run using various cost curves and identify the points of diminishing returns.

---

Definitions:

Inelastic Demand

When the quantity demanded of a good or service changes very little with a change in price, showing low sensitivity.

Demand

The desire for a particular good or service backed by the ability and willingness to pay for it.

Industrially Advanced Economies

Countries that are highly developed with significant industrial growth, sophisticated technology, and strong infrastructure, typically experiencing high standards of living.

Highly Elastic

refers to the sensitivity of demand or supply to changes in price or other factors, where a small change can cause a significant change in the quantity demanded or supplied.