Which of the Following Is Not a Characteristic of a Decentralized

question 6

Multiple Choice

Which of the following is not a characteristic of a decentralized organization?

• A)better use of local knowledge
• B)better use of top management's time
• C)reduced response time to environmental changes
• D)more decisions made by relatively few individuals

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Definitions:

MC

Stands for Marginal Cost, which is the cost incurred by producing one additional unit of a good or service.

Output

The quantity of goods or services produced within a given time period by a firm, sector, or economy.

U-Shaped Marginal Cost

A graphical representation of the cost incurred to produce one more unit of a good, which decreases at first due to increasing returns but eventually increases due to decreasing returns.

Profit-Maximizing Output

The quantity of output at which a firm achieves the maximum possible profit, determined where marginal revenue equals marginal cost.