Which of the Following Strategies Are Adopted by a Business

question 12

Multiple Choice

Which of the following strategies are adopted by a business tycoon when the first new management of the purchased company fails?

• A)He tries a second management team.
• B)He tries to train and motivate the existing management team.
• C)He sells off part of the company in the market.
• D)He tries to reduce the cost of production by lowering output.

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Definitions:

Allocative Efficiency

A state of the economy in which production represents consumer preferences; every good or service is distributed to yield the highest aggregate utility.

Willingness To Pay

The maximum amount a consumer is prepared to spend to acquire a good or service.

Acceptable Price

The price at which consumers feel they are getting good value for the products or services purchased.

Allocative Efficiency

A state of resource distribution where it is impossible to make any one individual better off without making someone else worse off, maximizing social welfare.