An Inaccurate Cost Function with a Constant That Is Estimated

question 113

Multiple Choice

An inaccurate cost function with a constant that is estimated too high may most likely result in ________.

• A) evaluating a weak manager as providing strong performance
• B) promoting a product that is actually less profitable than budgeted
• C) predicting total costs that are too low
• D) replicating processes that are truly cost saving

---

Definitions:

Unemployment

The condition of being without a job, while actively looking for one and being willing to work.

Minimum-wage Laws

Legislation that sets the lowest hourly wage rate that can be paid to workers, intended to protect employees from unduly low pay.

Labor Force

The total number of people employed and unemployed, actively seeking work in an economy.

Equilibrium Level

The state in which market supply and demand balance each other, resulting in stable prices and quantities.