How Does Causal Ambiguity Act as an Isolating Mechanism for Organizations

question 104

Multiple Choice

How does causal ambiguity act as an isolating mechanism for organizations?

• A) It makes it difficult for the competitors to understand why a company has been so successful.
• B) It creates a situation in which different social and business systems interact with one another.
• C) It makes it difficult for competitors to deploy their resources by creating ambiguity within their organizational structures.
• D) It makes it difficult for competitors to imitate core competencies quickly due to time compression diseconomies.

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Definitions:

Consumer Surplus

The disparity between the total sum consumers are ready to pay for a product or service and the actual amount they end up spending.

Producer Surplus

The difference between what producers are willing to accept for a good or service and the actual price they receive, reflecting extra benefit or profit.

Tax

Compulsory financial charge or some other type of levy imposed upon a taxpayer by a governmental organization in order to fund government spending and various public expenditures.

Deadweight Loss

The reduction in economic productivity resulting from a failure to reach or the impossibility of reaching the market equilibrium for a particular product or service.