Why Do Students Need to Study Information Technology

question 161

Multiple Choice

Why do students need to study information technology?

• A) Information technology is everywhere in business.
• B) Information technology is rarely discussed in business.
• C) Information technology is rarely used in organizations.
• D) Information technology is found in only a few businesses.

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Definitions:

Profit Maximizing

The process by which a firm determines the price and output level that returns the greatest profit, often involving analysis of marginal costs and marginal revenues.

Shutdown

The short-term decision by a firm to cease production due to operating at a loss, where total revenue is not covering variable costs.

Implicit Costs

These refers to the opportunity costs that are not directly paid or incurred but represent the foregone benefits from using resources in a particular way.

Economic Profit

The difference between total revenue and total costs, including both explicit and implicit costs, indicating the financial success exceeding the opportunity cost of resources.