Which of the Following Is FALSE

question 44

Multiple Choice

Which of the following is FALSE?

• A)A change in input prices shifts the isoquant map.
• B)Convex isoquants mean that the marginal rate of technical substitution decreases as the firm substitutes labor for capital.
• C)A change in total cost shifts the isocost curve.
• D)At the optimal input choice,the rate at which the firm can substitute labor for capital in production is equal to the rate at which the firm can substitute labor for capital in the market.
• E)none of the above.

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Definitions:

Centralization

The concentration of decision-making and administrative power within a central group or location within an organization.

Divestiture

Selling off parts of the organization to refocus attention on core business areas.

Decentralized

Decentralized refers to the distribution of power, tasks, and decision-making away from a central authority, often to increase efficiency and responsiveness.

Bureaucratic

Describes an organizational structure that is characterized by strict procedures, formalities, and a clear hierarchy of authority.