The Advantage of the Decentralized System Is That Each Center

question 19

True/False

The advantage of the decentralized system is that each center can operate on its own and thus reduce communication and coordination expense.

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Definitions:

Deadweight Loss

The reduction in total surplus that results from a market distortion, such as a tax or subsidy, signaling inefficiencies in allocation of resources.

Socially Optimal Level

A state at which the allocation of resources maximizes social welfare, often where marginal social benefit equals marginal social cost.

Marginal Revenue

Marginal revenue is the additional income received from selling one more unit of a product or service.

Marginal Cost

Marginal cost is the increase or decrease in the total cost of producing one additional unit of a good or service.