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Scenario - Malcolm Bagget

question 33

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Scenario - Malcolm Bagget
Malcolm Bagget has been working as a production employee for the last three years. His firm is currently undergoing a change in structure with a new management group and the production department is being restructured. Each production employee will be assigned to a small six-member production team. Malcolm is looking forward to the extensive cross training that has been promised and is looking forward to enjoying more power and discretion than he has had in the past. In addition to skill training, Malcolm is receiving management training in team building.
-One of Malcolm's co-workers, Danny Newcomber, is great at reducing tension by telling jokes and in other ways drawing off emotions when the group atmosphere is tense. Additionally, Danny can be counted on to energize by stimulating the team into action when the interest drops. Danny is demonstrating which of these?

Definitions:

Total Revenue

The overall amount of money generated by a business from its activities, typically from sales of goods or services before any expenses are deducted.

Marginal Cost Curves

A graphical representation showing how the cost of producing one additional unit of a good changes as production volume changes.

Law of Diminishing Returns

Law of Diminishing Returns states that in a production process, adding an additional factor of production, while holding all others constant, will at some point yield lower per-unit returns.

Sunk Costs

Costs that have already been incurred and cannot be recovered or refunded, and should not influence current or future decisions.