If There Is No Scarcity

question 36

Multiple Choice

If there is no scarcity,

• A) choices are no longer rational.
• B) the opportunity cost of an action would be greater than its sunk cost.
• C) all marginal benefits would equal zero.
• D) an action would have zero opportunity cost.
• E) the marginal cost of an action is greater than its marginal benefit.

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Definitions:

Centralization

The concentration of control or authority in the hands of a central government, organization, or individual.

Decentralized

The distribution of functions, powers, or people away from a central location or authority, often applied in contexts such as government, technology, and organizational structures.

Organizational Structure

Describes the system of task, workflow, reporting, and authority relationships within a company; it determines how the roles, power, and responsibilities are assigned, controlled, and coordinated, and how information flows between the various levels of an organization.

Power To Make Decisions

The authority or capacity to determine actions or policies within an organization or personal scope.