Which of the Following Statements Most Closely Identifies the Problem

question 44

Multiple Choice

Which of the following statements most closely identifies the problem with adopting Fayol's principles of organization design for contemporary businesses?

• A) Leaving some decision-making power to middle management has the effect of minimizing the effort and results that management would put into the other historical principles of organization.
• B) The rule making that develops from these principles creates organizations that don't respond quickly to customer needs.
• C) The principles of Fayol and Weber hamper a firm's ability to determine if it is profitable.
• D) Authority and responsibility quickly become unrelated.

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Definitions:

MUx/MUy

Represents the marginal utility of good x divided by the marginal utility of good y, often used in consumer choice theory to analyze optimal consumption points.

Indifference Curve Analysis

A graphical representation of consumer preferences showing combinations of goods or services among which they are indifferent, demonstrating varying levels of utility.

Indifference Curves

Graphical representations of different bundles of goods between which a consumer is indifferent, portraying preferences.

Indifference Curve

A graphical representation showing different bundles of goods between which a consumer is indifferent, reflecting their preferences and utility.