Over Time, the Hierarchy of Firms Has Tended to Move

question 21

Multiple Choice

Over time, the hierarchy of firms has tended to move from

• A)upstream to downstream.
• B)hierarchical to non-hierarchical.
• C)lateral to parallel.
• D)big to small to big again.

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Definitions:

Scatter Diagram

A graphical representation that displays the relationship between two variables, typically to identify correlation patterns.

Cost Behavior

The way different types of production costs change when there is a change in level of production activity.

Contribution Margin

The difference between a company's sales revenue and its variable costs, indicating how much revenue contributes to covering fixed costs.

Net Income

The total profit of a company after all expenses, including taxes and operating costs, have been subtracted from total revenues.