A Firm's Organizational Structure Is Comprised of

question 80

Multiple Choice

A firm's organizational structure is comprised of

• A) resource strengths and competitive capabilities that allow it to incorporate attributes at lower costs than rivals whose products have similar attributes.
• B) the formal and informal arrangement of tasks, responsibilities, lines of authority, and reporting relationships by which the firm is administered.
• C) excellent marketing and sales skills to convince buyers to pay a premium price for the attributes/features incorporated in its product.
• D) sustainable distinctive competencies to ensure cost reduction and competitiveness.
• E) a number of independent functional units involved in some common undertaking, with one unit typically in a more central role.

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Definitions:

Short Run

A time period in economics where at least one factor of production is fixed, limiting the immediate response to changes in demand or supply.

AVC

Average Variable Cost, the total variable cost divided by the quantity of output, representing the variable cost per unit of output.

Shutdown Point

The level of output at which a company is not making enough revenue to cover its variable costs, making it economically viable to cease production temporarily.

Accounting Profits

The total revenue of a business minus the explicit costs, reported on financial statements according to standard accounting practices.