While Decisions Arrived at Through Consensus Are Said to Have

question 46

Multiple Choice

While decisions arrived at through consensus are said to have an advantage of being better because they include the input of several individuals,which one of the following is a disadvantage of consensus decisions?

• A)Commitment of those affected by the decision
• B)Decreased input from others in the organization
• C)Habits formed from past experiences
• D)Increased judgment required on the part of the decision-maker
• E)Time necessary to reach the consensus

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Definitions:

Increasing-cost Industry

An industry in which production costs increase as output expands, often due to scarce resources or rising input prices.

Long-run Equilibrium

The condition in which all factors of production can be adjusted, leading to a situation where no firm in the industry wishes to change its output.

Market Price

The current value at which an asset or service can be bought or sold in an open market.

Economies of Scale

The economic benefits that businesses gain from their size of operations, where the expense per unit of production typically lowers as the scale increases.