According to the Text,a Convincing Argument Against Concentration of Market

question 113

Multiple Choice

According to the text,a convincing argument against concentration of market power is that

• A)Market power increases incentives for innovation and invention.
• B)Market power results in lower barriers to entry.
• C)The exercise of market power results in a higher price.
• D)Large firms can produce more efficiently than small firms because of diminishing returns in production.

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Definitions:

Particular Organizational Design

A unique configuration of an organization's structures, processes, and systems designed to achieve its goals and address specific challenges.

Professional Bureaucracy

An organizational structure that relies heavily on the expertise and professionalism of its members rather than on strict hierarchies or rules.

Horizontal Specialization

A division of labor where tasks are divided among employees at the same level within an organization, based on skills or expertise.

Mechanistic Structure

A mechanistic structure in an organization is characterized by rigid hierarchy, high levels of formalization, and centralized decision making.