As a Company Grows,what Happens to Its Organizational Structure

question 164

Multiple Choice

As a company grows,what happens to its organizational structure?

• A) it becomes more complex
• B) it uses a product departmentalization
• C) it becomes easier to understand
• D) it uses a functional departmentalization

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Definitions:

Labor Demand Curve

A graphical representation showing the quantity of labor that firms are willing to hire at different wage rates, assuming other factors remain constant.

Purely Competitive

A market structure characterized by many buyers and sellers, free entry and exit, and products that are homogeneous.

Labor Productivity

Total output divided by the quantity of labor employed to produce it; the average product of labor or output per hour of work.

Productivity

A measure of the efficiency of production, often calculated as the ratio of outputs produced to inputs used in the production process.