Which of the Following Most Likely Produces the Highest Risk

question 116

Multiple Choice

Which of the following most likely produces the highest risk of conflict?

• A)Ambiguous rules and low task interdependence.
• B)Precise rules and resource scarcity.
• C)Plentiful resources and high goal compatibility.
• D)Scarce resources and high task interdependence.
• E)None of these has any effect on the risk of conflict.

Understand the short-run and long-run adjustments in monopolistically competitive markets and their impact on firms and industries.

Interpret the implications of new firm entry on market competition, demand, and economic profits.

Differentiate between the market structures based on concentration measures and profitability.

Understand the relationship between market structure, efficiency, and the allocation of resources.

---

Definitions:

Contribution Margin Ratio

The proportion of sales revenue that remains after variable costs are subtracted, indicating how much contributes to covering fixed costs and generating profit.

Fixed Expenses

Costs that do not fluctuate with the level of production or sales, such as rent, insurance, and property taxes.

Contribution Margin Ratio

A ratio that represents the percentage of sales revenue that exceeds variable costs, indicating how much revenue contributes towards covering fixed costs and generating profit.

Break-even Point

The sales level at which total revenues equal total costs, resulting in no profit or loss.