Critical Thinking Questions Case 12-2 in Your Work in the IT

question 116

Multiple Choice

Critical Thinking Questions Case 12-2 In your work in the IT department, you are charged with asking the difficult questions about the feasibility of new systems as they are being developed. Which of the following is not a question of operational feasibility?

• A) Will the users like the new system?
• B) Will the new system cause any changes in the work environment?
• C) Will the new system meet the requirements of users?
• D) What is the return on investment of the new system?

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Definitions:

Break-Even Point

An output at which a firm makes a normal profit (total revenue = total cost) but not an economic profit.

Total Revenue

The total income received by a firm from selling its goods or services, calculated as the quantity sold multiplied by the selling price per unit.

Short-Run Supply Curve

A supply curve that shows the quantity of a product a firm in a purely competitive industry will offer to sell at various prices in the short run; the portion of the firm’s short-run marginal cost curve that lies above its average-variable-cost curve.

Marginal Cost Curve

A graph that shows the relationship between the marginal cost of producing an additional unit and the quantity of that unit produced.