The Systems Flexibility Argument Suggests That More Diverse Organizations Will

question 23

Multiple Choice

The systems flexibility argument suggests that more diverse organizations will be more competitive because they will

• A) be better able to understand different market segments.
• B) be characterized by multiple perspectives and ways of thinking.
• C) be better able to respond to changes in environment.
• D) become known among women and minorities as good places to work.
• E) have higher levels of productivity and lower levels of turnover and absenteeism.

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Definitions:

Marginal Cost

The financial outlay required to produce an additional product unit.

Socially Optimal

The socially optimal point is where the societal benefits of consuming a good or service equal the societal costs of producing it, leading to an efficient allocation of resources.

Marginal Benefit

The increase in utility or enjoyment an individual gets by consuming an additional unit of a good or service.

Marginal Cost

The extra expense associated with creating an additional unit of a product or service.