The Manager of a Perfectly Competitive Firm Has to Decide

question 38

Multiple Choice

The manager of a perfectly competitive firm has to decide:

• A)the quantity of output the firm should produce.
• B)the price the firm should charge for its output.
• C)the quantity of output the firm should produce and the price it should charge.
• D)neither the quantity of output the firm should produce nor the price it should charge because the market makes both of these decisions.

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Definitions:

Departmentalization

A process of grouping people with related job duties, skills, and experiences into different areas within the overall organizational structure.

Span of Control

A management concept that refers to the number of subordinates a supervisor or manager can effectively manage and control.

Bureaucracy

An organizational style characterized by formalized rules and regulation, specialized routine tasks, division of labor, and centralized authority.

Specialization

The process of focusing on a narrow area of expertise to become more efficient and productive in that area.