Needing to Deal with a Large Number and Variety of Situations

question 3

Multiple Choice

Needing to deal with a large number and variety of situations, officers develop "typifications" that are:

• A) based on experience
• B) stereotypes of people and problems
• C) linked to "recipes for action"
• D) all of the above

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Definitions:

Economic Profit

The return flowing to those who provide the economy with the economic resource of entrepreneurial ability; the total revenue of a firm less its economic costs (which include both explicit costs and implicit costs); also called “pure profit” and “above-normal profit.”

Accounting Costs

The explicit costs of running a business, such as wages, rent, and materials, recorded in the financial statements.

Total Revenue

The total amount of money received by a firm from sales of its products or services before any expenses are subtracted.

Average Product

The output per unit of input, for example, the average quantity of product produced per worker or per machine.