MACROSOFT's Top Management Is Contemplating the Development and Marketing of Three

question 25

Multiple Choice

MACROSOFT's top management is contemplating the development and marketing of three new software products (a word processor,a spreadsheet application,and a web browser) .However,it needs to decide whether to launch them separately or as a package.The CEO proposes to delegate the decision to a team formed with representatives from each department.Why does this proposal make economic sense?

• A)Ultimately,they are the ones who have to implement whatever decision is made,so one might as well ask their opinion.
• B)They are likely to make a more informed decision.
• C)Their differences are likely to prove to be advantageous to the management.
• D)If the project fails,the management will have someone to blame.

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Definitions:

Profit

The financial gain obtained when the total revenues generated exceed the total costs incurred by a business.

Marginal Cost

The growth in total expenses incurred from the production of one more unit.

Output

The total amount of goods or services produced by a firm or country.

Demand

How much of a good or service that consumers can and want to buy, influenced by differing price levels.