Systems Theorists Relate the Closed Organizational System to a Closed

question 52

True/False

Systems theorists relate the closed organizational system to a closed thermodynamic system,contending they both will approach a condition of maximum entropy with no further possibility of useful work.

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Definitions:

ATC

Stands for Average Total Cost, which is the total cost per unit of output produced.

Fixed Costs

Costs that do not vary with the level of production or sales, such as rent, salaries, and insurance, remaining constant regardless of the business activity.

AVC

Average Variable Cost is the total variable costs divided by the quantity of output, representing the variable cost per unit of output.

MC = MR

An economic principle stating that to maximize profits, firms should produce up to the point where marginal cost equals marginal revenue.