Nancy Lerner Is Taking a Course from Professor Goodheart Who

question 20

Multiple Choice

Nancy Lerner is taking a course from Professor Goodheart who will count only her best midterm grade and from Professor Stern who will count only her worst midterm grade.In one of her classes, Nancy has scores of 40 on her first midterm and 80 on her second midterm.When the first midterm score is measured on the horizontal axis and her second midterm score on the vertical, her indifference curve has a slope of zero at the point (40, 80) .This class could

• A)be Professor Goodheart's but could not be Professor Stern's.
• B)not be either Professor Goodheart's or Professor Stern's.
• C)be either Professor Goodheart's or Professor Stern's.
• D)be Professor Stern's but could not be Professor Goodheart's.
• E)There is not enough information to tell whose class it could or couldn't be.

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Definitions:

Decentralization

The distribution of decision-making powers away from a central authority to lower levels in an organization.

Franchise

The right or license granted to an individual or group to market a company’s goods or services.

License

A legal authorization allowing an individual or entity to use a piece of property or engage in a particular activity or business.

Decentralized Company

A decentralized company allows for decision-making authority to be distributed among various levels within the organization rather than being concentrated at the top.