One of the Most Important Messages for Managers from Shea's

question 53

Multiple Choice

One of the most important messages for managers from Shea's model is to ________.

• A) listen to complaints
• B) know what to ignore
• C) know who your friends are
• D) know what your job is

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Definitions:

Zero Economic Profits

A situation in perfect competition where firms earn just enough revenue to cover all their costs, including opportunity costs, indicating no supernormal profit above the normal rate of return.

Long-Run Equilibriums

A state in which all factors of production and market forces are balanced and economic variables are not expected to change.

Implicit And Explicit Costs

Implicit costs are the opportunity costs of using resources that a firm already owns, while explicit costs are direct payment outflows for purchasing productive resources.

Differentiated Products

Goods or services that are distinguished from one another by quality, features, branding, or other attributes that consumers may perceive as unique or valuable.