Decision by Lack of Response Occurs When One Idea After

question 20

True/False

Decision by lack of response occurs when one idea after another is suggested without discussing it, and then the team finally accepts an idea without any critical evaluation.

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Definitions:

TR = TC

The condition where total revenue equals total cost, indicating a break-even point in financial performance.

MR = MC

A principle in economics where the optimal level of production is reached when Marginal Revenue (MR) equals Marginal Cost (MC).

P < AVC

A condition where the price (P) of a good is less than the average variable cost (AVC), indicating a firm is not covering its variable costs and may cease production in the short run.

Average Total Cost

Average Total Cost is the total cost of production divided by the quantity produced, encompassing both fixed and variable costs.