Which of the Following Happens as Organizations Grow

question 123

Multiple Choice

Which of the following happens as organizations grow?

• A) Positions and departments are deleted.
• B) Management layers are eliminated to save cost.
• C) Managers have to find ways to tie different departments.
• D) Top management becomes more autocratic.
• E) None of these.

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Definitions:

Cartel Production Quota

The allocated amount of production assigned to each member of a cartel, aiming to control supply and influence market prices.

Monopolistically Competitive Firm

A company that operates in a market with many competitors, each offering products that are similar but not perfect substitutes, allowing for some degree of market power in setting prices.

Market Price

The present cost at which a service or asset is available for purchase or sale.

P > MC

Indicates a situation where the price (P) of a good is greater than the marginal cost (MC) of producing it, suggesting the potential for economic profits.