IBM's Principal Reason for Existing Is to Earn a Profit

question 109

Multiple Choice

IBM's principal reason for existing is to earn a profit for its shareholders. The means by which IBM does this is through the manufacture of computers. These two statements describe, respectively, IBM's

• A) strategy.
• B) mission.
• C) policy.
• D) tactical plan.
• E) control process.

Explain the significance of the lowest point on the average total cost curve.

Understand the relationship between a perfect competitor's demand curve and their marginal revenue curve.

Predict changes in output in response to economic conditions in the short run and long run.

Calculate total profits based on various economic conditions.

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Definitions:

Static Evaluation

A tendency to view people or situations as unchanging and to overlook potential for development or change.

Extended I Language

A brief preface to a feedback statement, intended to communicate that you do not want your listener to take your message in an overly critical way.

Inconveniences

Situations or events that cause mild annoyance or difficulty, hindering smooth processes or comfort.

Extended I Language

An advanced form of communication that emphasizes personal responsibility and feelings, used to express oneself clearly and assertively without placing blame or causing defensive reactions.