Critical Thinking Questions Case 1 You Have Taken a Temporary

question 49

Multiple Choice

Critical Thinking Questions Case 1 You have taken a temporary position as an IT consultant for a large firm with a variety of database solutions that you and your team are working to consolidate into one enterprise-wide solution. You are currently in the process of gathering information about where things stand with each of the individual database solutions. The CIO has weighed in on the situation and has decided that the risks associated with conversion are too great if there is a chance that the registration system will not work for registering users for the conference. Instead, she is willing to absorb the cost of running the new system in tandem with the old one. What conversion type is a good match for this approach?

• A) parallel
• B) direct
• C) phased
• D) pilot

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Definitions:

Short-Run Condition

A period in which at least one input is fixed and firms cannot fully adjust to new market conditions.

Shutting Down

A short-term decision by a firm to cease production when the market price is below variable costs, incurring losses only equal to fixed costs.

Total Revenue

The overall amount of money generated by a business from the sale of its goods or services.

Long-Run Equilibrium

A state in which supply and demand are balanced, and all firms in the industry are earning normal profits in the long term.