How Much Revenue a Firm Brings in by Improving the Quality

question 16

Multiple Choice

How much revenue a firm brings in by improving the quality of a product such that more consumers want to buy it depends on which two factors?

• A)The decrease in demand caused by the increase in quality and the incremental profit earned on each additional unit sold
• B)The increase in demand caused by the increase in quality and the incremental profit earned on each additional unit sold
• C)The increase in demand caused by the increase in quality and the incremental loss on each additional unit sold
• D)The decrease in demand caused by the increase in quality and the incremental loss on each additional unit sold
• E)The quality of changes to the original product and the decrease in demand cause by the changes in quality

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Definitions:

Path-Goal Theory

A leadership theory that suggests the leader's job is to assist followers in attaining their goals and to provide direction or support needed to ensure that their goals are compatible with the objectives of the group or organization.

Substitutes for Leadership

Situational factors that diminish the importance of leadership by providing guidance or motivation to group members, making direct leadership less necessary.

In-Groups

Social groups to which an individual feels a sense of belonging and loyalty, often distinguished by shared interests, values, or characteristics.

Out-Groups

Groups to which an individual does not belong or identify with, often viewed with bias or suspicion by the members of an in-group.