A Context Diagram Shows the Scope of the Organizational System,system

question 66

True/False

A context diagram shows the scope of the organizational system,system boundaries,external entities that interact with the system,and major information flows between entities and the system.

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Definitions:

Marginal Decision Rule

A principle that states that an action should be taken if, and only if, the marginal benefits exceed the marginal costs.

MC > MR

A condition where a firm's marginal cost is greater than its marginal revenue, suggesting that it would not be profitable to increase output further.

Monopolistic Competition

A market structure where many companies sell products that are similar but not identical, leading to competition based on price, quality, and marketing.

Marginal Decision Rule

A principle stating that actions should be taken if marginal benefits exceed marginal costs.