"Hidden Costs," Such as ________ Costs, Can Easily Undercut Anticipated

question 64

Multiple Choice

"Hidden costs," such as ________ costs, can easily undercut anticipated benefits from outsourcing.

• A) hardware
• B) software
• C) employee salary
• D) communications costs
• E) vendor selection

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Definitions:

Monopolistically Competitive

This refers to a market structure where many companies sell products that are similar but not identical, allowing for some degree of market power and product differentiation.

Economic Profit

The difference between a firm's total revenues and its opportunity costs, representing the additional gain over what could have been earned in the next best alternative.

Normal Profit

The minimum level of earnings needed for a company to remain in business, often considered as the company's opportunity cost.

Break Even

The juncture where the aggregate of all costs matches the total income, leading to neither a profit nor a loss.