A Manager Shouldn't Worry About Making a Financial Return from Money

question 251

True/False

A manager shouldn't worry about making a financial return from money spent on a quality program as long as customers recognize that the quality is high.

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Definitions:

Price-Taker Model

A market situation where individual firms are unable to influence the prices of goods or services they sell and must therefore accept the market price set by supply and demand forces.

Price-Taker Firm

A business that has no control over the market price of its products and must accept the prevailing market price.

Economic Profit

The difference between a firm's total revenue and its total costs, including both explicit and opportunity costs.