If a New Company Desires to Departmentalize in a Way

question 39

Multiple Choice

If a new company desires to departmentalize in a way that will simplify supervision and facilitate clear lines of communication, it will most likely departmentalize by which of the following?

• A) product
• B) location
• C) customer
• D) function

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Definitions:

Monopolistically Competitive

A market structure where many firms sell products that are similar but not identical, allowing for competition based on quality, price, and branding.

Long-run Equilibrium

A state in which all firms in a competitive market are making just enough profit to stay in business, with no incentive to enter or leave the market.

MR = MC

A condition where a firm's marginal revenue (MR) equals its marginal cost (MC), commonly used to determine the profit-maximizing level of output.

ATC

Stands for Average Total Cost, which is the cost per unit of output, calculated by dividing the total cost by the quantity produced.