Breakthrough Improvement Implies the Process Has Been Studied and That

question 96

True/False

Breakthrough improvement implies the process has been studied and that some major improvement has resulted in large nonrandom improvement to the process.

Grasp the concept of the marginal rate of transformation and its relevance to efficient economies.

Understand the relationship between production processes and market demands to maximize profit.

Analyze scenarios of resource allocation and its impact on social welfare.

Apply economic concepts to analyze resource allocation decisions.

---

Definitions:

Retained Earnings

Profits that a company retains for reinvestment rather than distributing to shareholders as dividends.

Dividends Payable

A liability account on a company’s balance sheet indicating the amount owed to shareholders in the form of dividends to be paid out.

Stock Split

A corporate action that increases the number of a corporation's outstanding shares by dividing each share, which may lower the share price.

Par Value

The nominal or face value of a stock or bond, as stated in the corporate charter or on the certificate.