Suboptimization Occurs When

question 11

Multiple Choice

Suboptimization occurs when

• A) a division or functional unit views itself as a separate entity and refuses to cooperate with other divisions or units to the detriment of the organization as a whole.
• B) there is a failure to produce at or near full capacity.
• C) individuals are placed into positions not suited to their abilities.
• D) managers tend to focus more of their attention on those aspects which are measurable than on those which are not.
• E) managers concentrate too much on short-term performance objectives.

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Definitions:

Public Goods

Goods that are non-excludable and non-rivalrous, meaning they can be used by many people simultaneously without depletion.

Pareto Optimal

A scenario in resource distribution where it's impossible to benefit one individual through reallocation without causing harm to another individual.

Public Goods

Goods that are non-excludable and non-rivalrous, meaning that no one can be effectively excluded from use and one person's use does not diminish another's.

Private Consumption

The spending on goods and services by individuals or households, as opposed to public or government spending.