All of the Following Statements About Information Channels Are Correct

question 44

Multiple Choice

All of the following statements about information channels are correct EXCEPT:

• A)networking takes place through the use of informal channels.
• B)informal channels adhere to an organization's hierarchy of authority.
• C)informal channels coexist with the formal channels of an organization.
• D)informal channels diverge from formal organization channels by skipping levels in the hierarchy or cutting across vertical chains of command.
• E)informal channels help to create open communications in organizations and ensure that the right people are in contact one another.

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Definitions:

Marginal Cost

The cost added by producing one additional unit of a product or service.

Average Total Cost

Calculated as the total cost of production (fixed plus variable costs) divided by the total output, indicating the average cost per unit produced.

Average Variable Cost

The total variable costs (costs that vary with production volume) divided by the quantity of output produced, representing the variable cost per unit.