The Behavioural Sciences Approach Uses Scientific Methods and Draws from Sociology,psychology,anthropology,economics

question 81

True/False

The behavioural sciences approach uses scientific methods and draws from sociology,psychology,anthropology,economics and other disciplines to develop theories about human behaviour and interaction in an organisational setting.

Differentiate between relevant and irrelevant costs in investment analysis.

Evaluate projects using the simple rate of return method.

Understand the impact of depreciation, salvage value, and working capital on capital budgeting decisions.

Assess the implications of cash flow timing and the time value of money in investment decisions.

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Definitions:

Long-Run Supply Curve

A graph that shows the relationship between the price of a good and the quantity supplied by all firms in the market, assuming all inputs are variable and firms can enter or exit the market.

Elasticity

Elasticity measures how responsive the quantity demanded or supplied of a good or service is to a change in one of its determinants, such as price, income, or prices of related goods.

Constant-Cost Industry

An industry where the input prices remain stable as the industry's output changes, leading to a linear supply curve because costs do not vary with the level of production.