FIGURE 16- 1

question 5

Multiple Choice

FIGURE 16- 1
-Refer to Figure 16- 1.Suppose that the perfectly competitive market with no government intervention achieves equilibrium at point A.If the social marginal costs and social marginal benefits are represented by MC0 and MB1,respectively,then there exists

• A)an external benefit.
• B)a social cost that exceeds the private cost.
• C)an external benefit and an external cost.
• D)no external benefits or costs.
• E)an external cost.

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Definitions:

Simple Structure

An organizational design characterized by a low degree of departmentalization, wide spans of control, authority centralized in a single person, and little formalization.

Adhocracy

An organizational structure characterized by flexibility, employee empowerment, and an emphasis on innovation and problem-solving rather than hierarchy and strict procedures.

Globalization

The method through which companies or various entities expand their influence globally or begin to function at an international level.

Cultural Differences

Variations in the ways of life, traditions, and practices among groups of people from different backgrounds.