Use the Table Below to Choose the Correct Answer

question 17

Multiple Choice

Use the table below to choose the correct answer.The table outlines the production possibilities of Robinson Crusoe and Joe Friday.

If Crusoe and Friday want to maximize their consumption possibilities,

• A)Crusoe should specialize in producing good X and Friday in producing good Y,but no trade should be allowed.
• B)Crusoe should specialize in producing good X and Friday in producing good Y;trade should occur to maximize joint consumption.
• C)Crusoe should specialize in producing good Y and Friday in producing good X;trade should occur to maximize joint consumption.
• D)both individuals should strive for self-sufficiency,which always maximizes output.

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Definitions:

Professional Bureaucracy

An organizational structure dominated by professionals who have control over their own work and decision-making processes.

Machine Bureaucracy

A highly structured organizational form that operates through strict procedures and rules, with tasks clearly defined and hierarchical authority.

Direct Management Supervision

A management approach where supervisors closely monitor and directly oversee their employees' work and processes.

Narrower Spans of Control

Organizational structure where a manager supervises a small number of subordinates, leading to closer supervision and more direct manager-employee interaction.