What Term Refers to a Situation in Which Markets Fail

question 218

Multiple Choice

What term refers to a situation in which markets fail to allocate resources efficiently?

• A) economic depression
• B) market failure
• C) corporate bankruptcy
• D) disequilibrium

Identify the factors that influence the choice of spans of control within an organization.

Distinguish between line and staff units in organizational structures.

Understand the role of unity of command and hierarchy of authority in organizational structures.

Identify different types of organizational charts and their significance.

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Definitions:

Product Cost

The total expense incurred to produce a product, including the costs of raw materials, labor, and overhead.

Machine Operators

Workers responsible for setting up, operating, and maintaining machines or equipment in a manufacturing or production facility.

Factory Overhead

Indirect costs associated with manufacturing, including utilities, maintenance, and depreciation of production facilities, not directly attributed to a specific product.

Product Cost

The total expense incurred to create and manufacture a product, including direct labor, materials, and overhead.