Perfectly Competitive Factor and Output Markets Are Similar in That

question 58

Multiple Choice

Perfectly competitive factor and output markets are similar in that when both are present both generate:

• A) an underproduction of output.
• B) an efficient allocation of resources.
• C) market prices that are greater than opportunity costs.
• D) market prices that are less than opportunity costs.

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Definitions:

Systems Approach

A holistic perspective that considers all components of a system and their interactions to understand or solve complex problems.

Management Theory

A collection of ideas and principles that provide a framework for effective management and organization of businesses and other enterprises.

Unity of Command

A principle in management and military strategy that stipulates each individual should report to only one manager to avoid confusion and conflict.

Henri Fayol

A French engineer and management theorist who is best known for developing a general theory of business administration and establishing the 14 principles of management.