If D Represents the Level of Decentralization of Corporate Decision

question 40

Multiple Choice

If D represents the level of decentralization of corporate decision making,and A and C are positive constants,then Benefits = B × D and Costs = A × D + C × D².The optimal level of decentralization occurs where:

• A)benefits equal costs.
• B)costs are equal to zero.
• C)D = BD - AD - CD²
• D)D = (B - A)/ 2C