A Software Company That Puts Almost All of Its Performance

question 101

Multiple Choice

A software company that puts almost all of its performance measurement effort into measuring the total number of units that the company and its competitors sell most likely wants to excel at ________.

• A)efficiency
• B)market share
• C)cost per unit
• D)labor per unit

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Definitions:

Productivity

An evaluation of how effectively a person, machine, factory, or system transforms inputs into valuable outputs.

Pure Rent

The return to any factor of production that is in fixed supply.

Fixed Supply

A condition where the quantity of a particular good, service, or resource does not change, regardless of the price.

MRP

Marginal Revenue Product, which refers to the additional revenue generated from employing one more unit of a resource.