Executives Must Be Careful to Avoid Spending So Much Time

question 114

Multiple Choice

Executives must be careful to avoid spending so much time and effort tracking the actions of ___________ that they ignore ____________.

• A)competitors; customers
• B)customers; competitors
• C)existing customers; existing competitors
• D)traditional competitors; new competitors

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Definitions:

Least-Cost Combination

is an economic principle where firms aim to produce a given output at the minimum possible cost by choosing the optimal combination of inputs.

Purely Competitive Conditions

Purely competitive conditions describe a market situation where numerous small firms compete against each other, selling homogeneous products, with no single firm able to influence market prices.

MU

MU typically stands for Marginal Utility, which is the additional satisfaction or utility that a consumer receives from consuming one more unit of a good or service.

Marginal Product

The additional output produced as a result of using one more unit of a variable input, like labor or capital.