An Overall Explanation of Why an Organization Exists and Where

question 60

Multiple Choice

An overall explanation of why an organization exists and where it is trying to head is referred to as which of the following?

• A) tactical plan
• B) prime directive
• C) corporate charter
• D) vision

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Definitions:

Average Total

The sum of all the costs of production (fixed and variable) divided by the total quantity produced; often referred to as average total cost.

Marginal Cost Curve

A graphical representation showing how the marginal cost varies with the quantity of output produced, typically U-shaped due to economies and diseconomies of scale.

Average Fixed Cost Curve

A graphical representation depicting how the average fixed costs of production change with different output levels.

Average Total Cost

The total cost of production (fixed and variable costs combined) divided by the number of units produced, indicating the cost per unit of output.