An Organization in Which Lower-Level Managers Make Important Decisions Is

question 97

Multiple Choice

An organization in which lower-level managers make important decisions is a(n) ________ organization.

• A)decentralized
• B)horizontal
• C)vertical
• D)informal
• E)centralized

Evaluate the efficiency of competitive price-taker markets in long-run equilibrium.

Comprehend the distinction between economic profit and accounting profit in competitive markets.

Predict the impact of changes in demand and supply on market prices and the quantity produced.

Understand the conditions under which firms in a competitive market earn zero economic profit in the long run.

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Definitions:

Equilibrium Quantity

The amount of goods or services that are bought and sold at the equilibrium price, where market demand meets market supply.

Consumer Surplus

The discrepancy between the total sum consumers are prepared and able to spend on a good or service and what they ultimately pay.

Equilibrium Price

The market price at which the quantity of goods supplied equals the quantity of goods demanded.

Equilibrium Quantity

The quantity of goods or services supplied that equals the quantity demanded at the market equilibrium price.