Big Bite Ltd

question 25

Multiple Choice

Big Bite Ltd. ,an American fast food chain,has franchises in several countries.Big Bite regularly provides extensive marketing and promotional support to its franchises,and there is a complete absence of rifts between its domestic and international divisions.This indicates that Big Bite Ltd.has an admirable _____.

• A)social culture
• B)structure
• C)political system
• D)management process

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Definitions:

Diminishing Marginal Product

The principle that as the quantity of a factor of production increases, holding all other inputs constant, the additional output generated by one more unit of that factor will eventually decrease.

Total Cost Function

A mathematical relationship expressing the total cost of production as a function of the quantity of output.

Explicit Costs

Direct, out-of-pocket payments for wages, rent, materials, and other inputs required for the production of goods or services.

Implicit Costs

The opportunity costs of utilizing resources owned by the firm that could have been employed elsewhere, not directly paid out in cash.