Is the Picture Clear

question 37

Multiple Choice

Is the Picture Clear?
Sharon was the state manager of a pay television company.Daily, she faced many problems and decisions such as how to price different advertising time slots, who to hire, how to prepare for the advent of new technology and how she should handle increasing viewer and sponsor complaints.She needed some help sorting these issues out.
-Refer to Is the Picture Clear? (Scenario) .Sometimes, Sharon instructs her middle managers to follow ________ when confronted with problem situations.These establish parameters for the manager making the decision rather than specifically stating what should or should not be done.

• A)rules
• B)procedures
• C)policies
• D)orders
• E)suggestions

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Definitions:

Explicit Costs

Direct, out-of-pocket expenses incurred in conducting a business activity, such as wages, rent, and materials.

Economic Profits

Profits earned by a company after accounting for both explicit (direct) and implicit (opportunity) costs.

Marginal-Cost Curve

A graph that shows the relationship between the marginal cost of producing an additional unit and the total quantity of the product produced.

Law of Diminishing

A principle stating that as more units of a variable input are added to fixed inputs, the additional output from each new unit of input eventually decreases.