A Company Facing a Simple Environment Would

question 7

Multiple Choice

A company facing a simple environment would:

• A) most likely be in the first stage of the environmental cycle
• B) exhibit proof of the punctuated equilibrium theory
• C) be unable to succeed due to lack of innovation
• D) be influenced only by factors in its specific environment
• E) have few external factors in the environment that affect it

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Definitions:

Marginal Product

The additional output resulting from one more unit of a given input, holding all other inputs constant.

Total Output

The total amount of goods and services produced by an economy or firm in a specific period.

Total Revenue

The total amount of money generated by a firm from selling its goods or services before any costs or expenses are subtracted.

Labor Productivity

A measure of economic performance that compares the amount of goods and services produced with the number of hours worked.