Which of the Following Is NOT Likely to Accompany an Increase

question 44

Multiple Choice

Which of the following is NOT likely to accompany an increase in the number of levels in the chain of command?

• A) The organisation gains additional competitive advantage.
• B) Decision making can be slowed greatly.
• C) The communication distance between the top and bottom levels of the organisation is increased.
• D) Overhead costs increase.
• E) Direct contact with the client or customer may be lost.

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Definitions:

Allocative Efficiency

A state of resource allocation in which it is impossible to make one individual better off without making at least one individual worse off.

Short Run

A term in economics referring to a time frame in which certain resources, particularly capital, are fixed and cannot be adjusted.

Socially Optimal Price

The price point at which the social welfare (total benefits to society) is maximized, often considered when analyzing the impact of public goods or services.

Pure Monopoly

A market structure where only one supplier provides a unique product or service, thereby controlling the entire market.