Many of the Organizations We See in Modern Society Today

question 9

Multiple Choice

Many of the organizations we see in modern society today have the hierarchical structure that Max Weber argued characterizes modern organizations.However,today many organizations are changing to a more __________ structure.

• A)free-flowing
• B)horizontal
• C)formal
• D)bottom-up
• E)cyclical

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Definitions:

Average Fixed Cost

Average Fixed Cost refers to the total fixed costs (costs that do not change with the level of output) divided by the quantity of output produced. It decreases as production increases.

Total Variable Cost

The total of expenses that vary directly with the level of production, such as raw materials and direct labor.

Marginal Product

The additional output resulting from the use of one more unit of a production input, keeping other inputs constant.

AVC

Average Variable Cost, which is the total variable costs divided by the quantity of output produced.