Organizational Networks Are Generally Composed Of

question 74

Multiple Choice

Organizational networks are generally composed of:

• A)Friends and professional contacts
• B)Individuals connected via online facilities such as Facebook.
• C)Mainly small and closely interdependent, specialized firms that cooperate to design and produce products, often under the aegis of a much larger central coordinator firm.
• D)Organizations connected through professional associations

Differentiate between product and process innovations and their effects on firms' costs and revenues.

Comprehend the advantages of being first in developing a new product.

Recognize the economic rationale behind R&D expenditures and the factors influencing firms' decisions.

Understand the relationship between inventors and entrepreneurs.

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Definitions:

Average Product

The amount of output produced on average by each unit of a variable input, such as labor, in the production process.

Marginal Product

is the additional output resulting from a one-unit increase in the quantity of one input while holding other inputs constant, illustrating the concept of diminishing returns.

Last Dollar Spent

The concept of allocating resources until the marginal utility of expenditure on each good or service is equal, maximizing utility.

Labor Productivity

A measure of the amount of goods and services produced by one hour of labor.