Millishk, a Creamery That Produces Ice Cream and Yogurt, Has

question 91

Multiple Choice

Millishk, a creamery that produces ice cream and yogurt, has a production facility in every country it operates in. The company uses different ingredients for the manufacture of its products based on local preferences. In the company's management structure, each production facility is considered a department. Given this information, Millishk most likely follows _____.

• A) functional departmentalization
• B) geographic departmentalization
• C) customer departmentalization
• D) product departmentalization

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Definitions:

Profit Maximizing

The process of finding the level of output where a firm achieves the maximum possible profit.

Kinked Demand Curve Model

Oligopoly model in which each firm faces a demand curve kinked at the currently prevailing price: at higher prices demand is very elastic, whereas at lower prices it is inelastic.

Rivals' Price

The cost set by competing businesses for similar products or services in the market.

Marginal Cost

The additional cost associated with producing one more unit of output.