The Ability to Produce a Good or Service at a Lower

question 185

Multiple Choice

The ability to produce a good or service at a lower opportunity cost than other producers is

• A) absolute advantage.
• B) comparative advantage.
• C) opportunity advantage.
• D) special advantage.

Distinguish between customer-facing and customer-touching CRM applications and decide on their applicability depending on customer value.

Understand the fundamental concepts and purposes of different types of information systems (IS) such as ERP, TPS, SCM, CRM, FAIS, and MRP.

Identify the roles and functionalities of information systems in managing inventory, transactions, and production processes.

Differentiate between various types of reports and their purposes within organizational information systems.

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Definitions:

Normal Profit

Normal profit is the minimum level of earnings necessary for a company to remain competitive in the market, covering its opportunity costs.

Market Equilibrium

A state where the supply of goods matches demand, leading to a stable price level for those goods.

Average Total Cost

The sum of all production expenses (both fixed and variable) divided by the overall output.

Total Variable Cost

The cumulative expenses that change in proportion to the level of goods or services produced.