You Are the Manager of a Firm That Sells Its

question 129

Multiple Choice

You are the manager of a firm that sells its product in a monopolistically competitive market with (inverse) demand given by P = 50 − 0.5Q.Your firm's cost function is C = 40 + 5Q².Your firm's marginal revenue is:

• A) P = 50 − 0.5Q.
• B) P = 50 − Q.
• C) P = 100 − Q.
• D) There is insufficient information to determine the firm's marginal revenue.

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Definitions:

Theory X

A management assumption that employees are inherently lazy, require close supervision and control, and are motivated primarily by financial incentives.

Theory Y

A management approach based on the belief that employees are intrinsically motivated and will seek out responsibility and development if given the opportunity.

Self-fulfilling Prophecies

Situations where an initially false expectation leads to its own confirmation because the expectation influences behavior to make it true.

Theory X

A management theory assuming that employees are inherently lazy and will avoid work if they can, thus needing to be closely supervised and controlled.