Low Inflation Is a Trigger for Improved Project Management Skills

question 93

Multiple Choice

Low inflation is a trigger for improved project management skills because:

• A)Rampant cost increases must be passed along to the consumer.
• B)Internal process improvement is accomplished via project management.
• C)Lower inflation means narrower product launch windows.
• D)Global markets are a prerequisite for low inflation.

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Definitions:

Total Revenues

The total income received by a firm from selling its goods or services before any costs or expenses are subtracted.

Total Costs

The sum of all expenses incurred in the production of goods or services, including fixed and variable costs.

Constant Cost Industry

An industry in which the costs of production do not change as the industry's output changes.

Natural Monopoly

A market situation in which the average costs of production continually decline with increased output. In a natural monopoly, the average costs of production will be lowest when a single, large firm produces the entire output demanded by the marketplace.