List the Four Macro- and Four Micro-Level Factors Managers Should

question 70

Essay

List the four macro- and four micro-level factors managers should consider when they select information technology resources based on the discussion in the text.

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Definitions:

Total Fixed Costs

The sum of all costs that remain constant regardless of the level of output or production volume.

Total Costs

The overall expenditure involved in producing goods or offering services, comprising both stable and changeable costs.

Economies of Scale

The cost advantage achieved when production becomes efficient, as the scale of production increases, leading to a reduction in the average cost to make each unit.

Diseconomies of Scale

A situation where, as a firm becomes larger, its costs per unit increase due to inefficiencies that arise from its growth.