The Use of Market Control Mechanisms Has Been Criticized by Those

question 48

Multiple Choice

The use of market control mechanisms has been criticized by those who believe that

• A) they rely too heavily on rules and procedures.
• B) economic measures do not adequately reflect the complete value of an organization.
• C) they are too dependent on the organizational culture.
• D) economic measures are the only reflection of environmental sustainability.
• E) decision making and power are too centralized when they are in use.

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Definitions:

Profit-maximizing

A strategy or point at which a business makes the greatest financial gain, where marginal revenue equals marginal cost.

Total Revenue

The overall income generated by a business from its sales or services before any costs or expenses are subtracted.

Total Cost

The sum of fixed and variable costs incurred by a firm in producing and selling a product.

Profitable Level

The point at which a company's revenues exceed its costs, leading to financial gain or profit.