​All of the Following Can Cause Conflict Between Divisions EXCEPT

question 84

Multiple Choice

​All of the following can cause conflict between divisions EXCEPT

• A)​Divisional managers are rewarded on the profitability of the firm,instead of profitability of the division     
• B)managers of profit centers care too little about the effects of their decisions on other divisions
• C)managers are rewarded only for how much profit their division generates
• D)​corporate executives cannot tell when one divisional manager's decisions are appropriate or not

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Definitions:

Optimal Output

The level of production where a firm maximizes its profits or minimizes its losses.

Differentiated Products

Products that are distinguished from others through variations in quality, features, design, branding, or customer service.

Equilibrium Price

The market price at which the quantity of goods supplied is equal to the quantity of goods demanded.

Reaction Curve

A graph that shows how one player's optimal strategy choice depends on the strategy choice of another player.