To Take Advantage of the Potential for Synergy in Groups

question 81

Multiple Choice

To take advantage of the potential for synergy in groups, managers should

• A)create groups of similar individuals.
• B)be strongly directive with the group.
• C)reward individual performance.
• D)appoint members with complementary skills.

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Definitions:

Pareto Efficient

A Pareto efficient outcome is one in which it is impossible to make any one individual better off without making at least one individual worse off, indicating an optimal allocation of resources.

Utility Function

A mathematical representation of how a consumer's preferences between different goods or services translate into levels of satisfaction or utility.

Initial Endowment

Refers to the initial allocation of goods, resources, or wealth that an individual or entity possesses before any transactions.

Pareto Efficient

A situation where no individual or preference criterion can be better off without making at least one individual or preference criterion worse off.