Fred and Ann Are Both Given Free Tickets to See

question 22

Multiple Choice

Fred and Ann are both given free tickets to see a movie. Both decide to see the same movie. We know that

• A) it is not possible to calculate the opportunity cost of seeing the movie because the tickets were free.
• B) the opportunity cost of seeing the movie is zero because the tickets were free.
• C) both bear an opportunity cost of seeing the movie because they could have done other things instead of seeing the movie.
• D) both bear the same opportunity cost of seeing the movie because they are doing the same thing.

Comprehend the concept of the zone of indifference and its significance in organizational behavior.

Identify and describe tangible symbols of power as per Michael Korda.

Analyze the ethical dimensions of power-related behavior using the criterion of utilitarian outcomes.

Describe the characteristics of managers who use power successfully according to David McClelland.

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Definitions:

Marginal Costs

The expense associated with manufacturing an extra unit of a product or service.

TVC

The total expenses a firm incurs that increase or decrease with the level of output, essentially another term for total variable costs with a rephrased definition.

AVC

Average Variable Cost, which is the total variable costs divided by the quantity of output produced, reflecting the variable cost per unit.

MC

Marginal Cost, the increase or decrease in the total cost of a production run for making one additional unit of an item.