Whenever Someone in the Department Has to Write a Report

question 115

Multiple Choice

Whenever someone in the department has to write a report about how to market a new product,they typically have to get input from Jim.Because Jim deals with customers on a daily basis he knows what their concerns are and what they want from company services.What is Jim's dominant type of power?

• A)coercive
• B)reward
• C)legitimate
• D)referent
• E)expert

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Definitions:

Marginal Cost

The expense involved in manufacturing an extra unit of a good or service.

Market Price

The current price at which an asset or service can be bought or sold, determined by the supply and demand dynamics in the marketplace.

Price-Taker Firm

A company that has no control over the market price and must accept the prevailing market price for its product or service.

Price-Taker Model

A market situation where individual firms do not have the power to set prices for their products, instead accepting the market price.