What Are the Probable Implications of a Firm Neglecting Its

question 33

Multiple Choice

What are the probable implications of a firm neglecting its knowledge and learning resources?

• A)It will become weaker financially
• B)Its general organizational resources will become weaker
• C)Its physical resources will become weaker
• D)Its human resources will become weaker
• E)All of the above

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Definitions:

Economic Profit

the difference between total revenue and total opportunity costs; a measure of profit beyond the normal return on investment.

Marginal Cost

The addition to total cost from producing one additional unit of a product.

Perfectly Competitive Firm

A perfectly competitive firm operates in a market where there are many buyers and sellers, the product is homogenous, and there is free entry and exit from the market.

Economic Profit

The gap in financial terms between total earnings and all financial burdens, considering both express and tacit costs.