Ed_t = - 5. This Means That If

question 31

Multiple Choice

Ed_t = - 5. This means that if

• A) P_t increases by 5%, then Qd_t will decrease by 1%
• B) Qd_t increases by 5%, P_t will decrease by 1%
• C) P_t increases by 1%, Qd_t will decrease by 5%
• D) P_t decreases by $1.00, Qd_t will decrease by 5 units

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Definitions:

Economies of Scale

Cost advantages that enterprises obtain due to their scale of operation, with cost per unit of output generally decreasing with increasing scale.

Matrix Structure

An organizational design that combines two or more types of structures, typically functional and product-based, to leverage the advantages of both.

Functional Manager

is a manager who has authority over a specific department or unit within an organization, specializing in a particular function such as marketing or finance.

Product Manager

A role responsible for the strategy, roadmap, and feature definition for a product or product line, often acting as a liaison between various teams.