At an Internet Company, All the People Associated with Maintaining

question 5

Multiple Choice

At an Internet company, all the people associated with maintaining the website are grouped together in one department. This is an example of _____ grouping.

• A) horizontal
• B) multi-focused
• C) divisional
• D) functional

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Definitions:

Economic Profit

the difference between total revenue and total opportunity costs; a measure of profit beyond the normal return on investment.

Marginal Cost

The addition to total cost from producing one additional unit of a product.

Perfectly Competitive Firm

A perfectly competitive firm operates in a market where there are many buyers and sellers, the product is homogenous, and there is free entry and exit from the market.

Economic Profit

The gap in financial terms between total earnings and all financial burdens, considering both express and tacit costs.