When Rationalizing Decisions About Downsizing,many Managers Will Rely on Economic,accounting,and

question 101

True/False

When rationalizing decisions about downsizing,many managers will rely on economic,accounting,and revenue-based rationales.

---

Definitions:

Marginal Cost

The expense incurred in creating an extra single unit of a product or service.

Price Elasticity

A metric that determines how the demand for a certain good fluctuates with its price adjustments.

Marginal Revenue

The additional income that an organization receives from selling one more unit of a good or service.

Profit Maximizing

The process or strategy by which a firm adjusts its production to achieve the highest possible profit.