When a Manager Tries to Predict Prices and Quantities That

question 111

True/False

When a manager tries to predict prices and quantities that will be sold, he or she is dealing with microeconomics.

---

Definitions:

Fixed Expenses

Costs that do not change with the level of production or sales over a short period, such as rent, salaries, and insurance.

Net Operating Income

Income before interest and income taxes have been deducted.

Drop Product

A strategy or decision by a company to discontinue the production, sale, or support of a product line or item.

Special Order

A one-time order that is not considered part of the company’s normal ongoing business.