A Firm's Organizational Structure Is Comprised Of

question 2

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 competences to ensure cost reduction and competitiveness.
• E) None of these.

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Definitions:

Revenue

The total income generated from the sale of goods or services before any expenses are subtracted.

Marginal Product

The additional output that is produced by adding one more unit of a specific input, while holding all other inputs constant.

Diminishing Returns

The decrease in the marginal (incremental) output of a production process as the amount of a single factor of production is incrementally increased, while other factors are kept constant.

Average Cost

The total cost of production divided by the number of goods produced.