A Parent Agency with Multiple Offices

question 17

Multiple Choice

A parent agency with multiple offices:

• A)does not expect each office to function as an autonomous agency.
• B)does not expect each office to draw on talents from other offices.
• C)does not expect each office to draw on services from other offices.
• D)does not work on the same project for the same client.
• E)does not try to secure accounts globally.

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Definitions:

AVC

Average Variable Cost, referring to the variable cost per unit of output.

MC

An abbreviation commonly used for marginal cost, which is the cost added by producing one additional unit of a product or service.

Average Variable Cost

The variable cost per unit of output; the total variable cost divided by the number of units produced.

Economic Profit

The gap between the complete income and all expenses, covering overt and hidden costs.