One Advantage of Decentralization Is Faster Response Time to Changes

question 4

True/False

One advantage of decentralization is faster response time to changes in the organization's environment by local managers.

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Definitions:

Maximize Profit

To maximize profit, a firm seeks to increase the difference between its total revenues and total costs through optimal pricing strategies and efficient production.

Marginal Cost

Marginal cost represents the increase or decrease in the total cost of production when the quantity produced is incremented by one unit.

Purely Competitive Firm

A business that operates in a market with many buyers and sellers, where each firm has no control over the market price and produces a homogeneous product.

Maximize Profit

The economic goal of efficiently allocating resources in production to achieve the highest possible return or profit.