The ________ Concept Means That an Organization Strives to Satisfy

question 91

Multiple Choice

The ________ concept means that an organization strives to satisfy consumer needs while achieving its goals.

• A) marketing
• B) sales
• C) production
• D) societal benefit
• E) customer relationship

Analyze a firm’s decision-making process in relation to average and marginal costs to determine optimal production levels.

Recognize and explain the phenomena of economies of scale and diseconomies of scale.

Identify explicit and implicit costs in business operations and their impact on profit calculation.

Assess strategies for incentivizing efficient work behavior in employees.

---

Definitions:

Nonexcludability

Nonexcludability is a feature of public goods where it is not possible to prevent individuals from consuming the good, irrespective of whether they have contributed to its provision.

Public Goods

Goods that are non-excludable and non-rivalrous, meaning no one can be effectively excluded from use and use by one does not reduce availability to others.

Optimal Quantity

The amount of a good or service that yields the highest net benefit to producers and consumers, considering costs and benefits.

Marginal Benefit

The surplus happiness or utility experienced from using an extra unit of any good or service.