The Acceptance Theory of Authority Argues That

question 147

Multiple Choice

The acceptance theory of authority argues that:

• A) a manager has authority only if subordinates choose to accept his or her commands.
• B) a manager has authority at all times.
• C) a manager can force subordinates to accept his or her authority.
• D) authority should be shared between a manager and his or her subordinates.
• E) authority is vested in people, not organizational positions.

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Definitions:

Excess Capacity

A situation where a company can produce more goods than the market demands, often leading to inefficiencies.

Monopolistic Competition

A market structure featuring many firms selling products that are similar but not identical, allowing for competition based on quality, price, and marketing.

Chronic Excess Capacity

A persistent situation in which industries or firms have more production capacity available than is being used, often leading to economic inefficiencies and reduced profit margins.

Minimum-Cost Output

The quantity of output at which the average total cost is lowest—the bottom of the U-shaped average total cost curve.