A Manager Who Chooses the Right Goals to Pursue but Does

question 56

Multiple Choice

A manager who chooses the right goals to pursue but does a poor job of using resources to achieve these goals is said to have:

• A)high efficiency | high effectiveness
• B)low efficiency | low effectiveness
• C)low efficiency | high effectiveness
• D)high efficiency | low effectiveness
• E)all of these choices are incorrect

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Definitions:

Profit-Maximizing Principle

The concept that firms operate to achieve the highest profit possible, which involves setting output where marginal costs equal marginal revenues.

Marginal Analysis

An examination of the benefits and costs of one additional unit of production or consumption.

Marginal Benefit

Refers to the additional satisfaction or utility that a person receives from consuming an additional unit of a good or service.

Marginal Benefit

The additional satisfaction or utility gained by consuming one more unit of a good or service, important for decision-making in consumption and production.