Which of the Following Statements Is Correct

question 65

Multiple Choice

Which of the following statements is correct?

• A)A firm with high fixed costs tends to decrease prices more and output less in the face of declining demand than a firm with relatively low fixed costs.
• B)A firm with high fixed costs tends to decrease prices less and output more in the face of declining demand than a firm with relatively low fixed costs.
• C)A firm with high fixed costs tends to decrease prices and output more in the face of declining demand than a firm with relatively low fixed costs.
• D)A firm with high fixed costs tends to decrease prices and output less in the face of declining demand than a firm with relatively low fixed costs.

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Definitions:

Passive Workers

Employees who do not actively engage or contribute ideas and feedback in their workplace, often doing just the minimum required.

Weber's Bureaucracy

A concept developed by sociologist Max Weber that describes a structured, organized, and hierarchical form of organization, characterized by formal procedures, division of labor, and a clear hierarchy of authority.

Theory X

A management theory assuming employees are inherently lazy and will avoid work if they can, necessitating control and coercion.

Directive Relationships

Relationships characterized by one party giving instructions or directions to another within an organizational hierarchy.