Tyree Is Starting a New Project and Wants an Advisory

question 45

Multiple Choice

Tyree is starting a new project and wants an advisory board, as this project will affect many people and hearing the opinions of others will be beneficial. As he sits down to consider who should be on the board, he lists many organizations, both civic and private. He wants to be sure to include the institutions of higher education, so that they can be informed of the type of employees he will need in the future. Tyree wants to be careful to not forget private citizens, so that this project will not end up causing a political debate and being shut down before it even starts. When he looks at his list, he has over 40 people on it. He decides that is a good enough number and he is ready to start sending out the invitations to the first meeting. Tyree's partner advises him with which of these following statements?

• A) In general, the larger the group, the lower the quality of their decisions.
• B) In general, the larger the group, the higher the quality of their decisions.
• C) In general, the larger the group, the faster they make decisions.
• D) In general, the larger the group, the faster they come to consensus.
• E) In general, the larger the group, the more knowledge, so the better the decisions.

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Definitions:

Price Elastic

Describes the responsiveness of the quantity demanded or supplied of a good to a change in its price; high elasticity indicates a significant response to price changes.

More Substitutes

The increase in alternative products or services that can replace or serve as options to a current product.

Demand Is Inelastic

A situation where the quantity demanded of a product changes very little in response to changes in its price.

Total Revenue

The overall amount of money generated from the sale of goods or services before subtracting any expenses.