Which of the Following Statements Is Supported by the Contingency

question 76

Multiple Choice

Which of the following statements is supported by the contingency approach to management?

• A) There is one best way to solve a management problem in any organization.
• B) Managers' decisions vary depending on the particular situation and the people involved.
• C) In most cases, solutions to similar problems will apply across organizations.
• D) Managers within the same organization should follow the same solution for similar problems.
• E) Managers should make decisions that are consistent from employee to employee.

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Definitions:

Market Price

The price at which a good or service is offered in the marketplace, determined by supply and demand.

Economic Profit

The difference between the total revenue received from the sale of an output and the total opportunity costs of the inputs used.

Average Variable Cost

The total variable costs (costs that change with the level of output) divided by the quantity of output produced.

Economic Loss

A situation where total costs exceed total revenues, resulting in a negative profit for a business or economy.