The Set of Informal Institutions That Stresses the Cognitive Pillar

question 39

Multiple Choice

The set of informal institutions that stresses the cognitive pillar lays emphasis on _____.

• A) establishing wholly owned subsidiaries 
• B) granting more liberal policies 
• C) copying reputable organizations to ensure a low-cost way to gain legitimacy 
• D) the internalized taken-for-granted values and beliefs that guide firm behavior

---

Definitions:

Objectively Determined

Describes a value or decision made based on factual and unbiased criteria, removing personal feelings or opinions.

Indifference Schedule

An indifference schedule is a table or graph representing combinations of two goods among which a consumer is indifferent, showing how much of one good the consumer is willing to give up to obtain more of the other good.

Willingness

The readiness or inclination of a person to do something or to act in a certain way, often used in economic contexts to discuss willingness to pay.

Marginal Utility

The incremental benefit or satisfaction a buyer obtains from the consumption of one more unit of a good or service.