How Does a Centralized Organization Solve Coordination Problems

question 25

Multiple Choice

How does a centralized organization solve coordination problems?

• A)Allows for face to face communication
• B)Creates a smaller organization
• C)Reduces the costs of business
• D)Concentrates decision making authority in a one or a small group of people
• E)Information can take more time to trickle down

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Definitions:

Surpluses

The amount by which supply exceeds demand, often referring to goods, services or public finances.

Shortages

A situation where the demand for a product or service exceeds the supply available at a specific price.

Price Floor

A government- or authority-imposed minimum price set above the equilibrium price, preventing sellers from trading at lower prices.

Surplus

An excess of something, often used in economic contexts to describe a situation in which supply exceeds demand.