Research Indicates That the Efficiencies of Managing Through Centralized Control

question 90

Multiple Choice

Research indicates that the efficiencies of managing through centralized control may be ________ when the operating environments of divisions in multidivisional organizations are relatively ________.

• A) greater; stable and predictable
• B) static; stable and predictable
• C) greater; turbulent and unpredictable
• D) static; turbulent and unpredictable

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Definitions:

Elastic Demand

A situation where the demand for a product or service significantly changes in response to a change in price, indicating consumers' sensitivity to price changes.

Inelastic Demand

A situation where the demand for a product or service remains relatively unchanged despite changes in its price.

Marginal Cost

The rise in aggregate expenditure resulting from the production of one more unit of a good or service.

Demand Curve

A graph showing the relationship between the price of a good and the quantity demanded.