To Avoid a Stifling Atmosphere for Nonfamily Employees in a Family

question 65

Multiple Choice

To avoid a stifling atmosphere for nonfamily employees in a family business,the owner should:

• A)promote only nonfamily members.
• B)avoid all special consideration for family members.
• C)make clear the extent of opportunity for nonfamily members.
• D)minimize discussion about future management changes.

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Definitions:

Short-Run Capacity

Refers to the maximum output a firm can produce under a given set of fixed and variable inputs within a short period.

Average Variable Cost

Average variable cost is the total variable cost divided by the quantity of output, showing the cost of producing one more unit of a good.

Marginal Product

The additional output produced by using one more unit of a given input, holding all other inputs constant.

Marginal Cost Curve

A graphical representation that shows how the cost of producing one additional unit of a good changes as the production volume varies.