A Command System Is a

question 343

Multiple Choice

A command system is a

• A) method of organizing production that uses a market-like mechanism inside the firm.
• B) method of organizing production that uses a managerial hierarchy.
• C) set of rules that induce an agent to act in the best interest of a principal.
• D) method of production that implements an assembly-line process.

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Definitions:

Economic Profits

Profits earned by a firm or individual in excess of the opportunity costs of all resources used to generate those profits, representing returns beyond the normal profit level.

Pure Competition

A market structure characterized by a large number of small firms, a homogeneous product, perfect information, and easy entry and exit from the market.

Monopoly

A market structure characterized by a single seller offering a unique product or service, with significant barriers to entry for potential competitors.

Price

The financial requisition expected, imposed, or presented for something.