Which of the Following Factors Is Generally Considered in Performing

question 34

Multiple Choice

Which of the following factors is generally considered in performing the environmental analysis phase of strategy formulation?

• A) Competitors
• B) Government regulations
• C) Customer demand
• D) All of the above

---

Definitions:

Total Variable Cost

The sum of all costs that vary with output level, including costs of direct materials, direct labor, and other expenses that increase or decrease as production volume changes.

Variable Cost

Costs that change in proportion to the level of output in the production process.

Marginal Product

The marginal product is the additional output produced as a result of using one more unit of a particular input, holding all other inputs constant.

Average Variable Cost

The total variable costs divided by the quantity of output produced, indicating the variable cost per unit of output.