The Optimum Level for a Firm's Diversification Is Where

question 84

Multiple Choice

The optimum level for a firm's diversification is where:

• A)​Marginal bureaucratic costs are greater than marginal economic benefit.
• B)​Marginal economic benefit is less than marginal bureaucratic costs.
• C) ​Total bureaucratic costs equal marginal economic benefits.
• D) ​Marginal bureaucratic costs equal marginal economic benefits.

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Definitions:

Information-Processing Model

A cognitive framework that likens the mind to a computer and describes how information is acquired, processed, stored, and retrieved.

Relearning

The process of learning material or skills for a second time, often more quickly than the initial learning.

Information-Processing Model

A framework used to understand how humans think, reason, and learn, likening the mind to a computer.

Encoding

The act of turning information into a version that is capable of being preserved in memory.