According to the Text, Which of the Following Is a Pitfall

question 84

Multiple Choice

According to the text, which of the following is a pitfall of planning?

• A) the acceptance of sacrificing solutions
• B) a false sense of certainty based on faulty assumptions
• C) the inability of organizational line personnel to accept the long-term benefit of planning
• D) the requirement for expensive employee training before plans can be effectively implemented
• E) outsourcing

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Definitions:

Profit

The financial gain achieved when the amount of revenue gained from a business activity exceeds the expenses, costs, and taxes involved in sustaining the activity.

Deadweight Loss

A loss of economic efficiency that occurs when the equilibrium for a good or service is not achieved or is unattainable.

Single Price Monopolist

A monopolist who charges all consumers the same price for its product, irrespective of the quantity purchased.

Profit-Maximizing Quantity

The level of output at which a company achieves the highest possible profit, determined by analyzing costs and revenues.