The Reason Why Some Organizations Reject a Functional Organizational Structure

question 48

True/False

The reason why some organizations reject a functional organizational structure is because they believe it renders them unable to respond to environmental changes that require coordination between functional areas,and because it offers each employee a restricted view of the organization's primary goal.

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Definitions:

Average Total Cost

The per-unit production cost, obtained by dividing the overall expenses of production by the number of items produced.

Purely Competitive

A market scenario where sellers sell identical products, and there is free entry and exit, ensuring no single seller can influence market prices.

Long Run

An interval in which every aspect of production and costs can vary, enabling modifications to all contributions.