When a Subordinate Recommends to Her Manager That Their Department

question 21

True/False

When a subordinate recommends to her manager that their department get additional help for the inventory process, it is considered vertical communication.

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Definitions:

Marginal Cost

The expense involved in manufacturing an extra unit of a good or service.

Market Price

The current price at which an asset or service can be bought or sold, determined by the supply and demand dynamics in the marketplace.

Price-Taker Firm

A company that has no control over the market price and must accept the prevailing market price for its product or service.

Price-Taker Model

A market situation where individual firms do not have the power to set prices for their products, instead accepting the market price.