A Measure Frequently Used to Evaluate the Performance of the Manager

question 45

Multiple Choice

A measure frequently used to evaluate the performance of the manager of an investment center is

• A) the amount of profit generated.
• B) the rate of return on funds invested in the center.
• C) the percentage increase in profit over the previous year.
• D) departmental gross profit.

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Definitions:

Cournot Equilibrium

A state in an oligopoly market where each firm chooses its quantity to maximize its profit, assuming the quantities of its competitors are fixed.

Collude

To engage in secret or illegal cooperation or conspiracy, especially in order to cheat or deceive others.

Stackelberg Duopoly

A model of imperfect competition in which one firm sets its output first, influencing the market response of the other firm.

MR

Marginal Revenue, which is the increase in revenue that results from the sale of one additional unit of a product or service.