A Matrix Organization

question 117

Multiple Choice

A matrix organization

• A) combines a product line structure with a geographical structure.
• B) combines a geographical structure with a market-based structure.
• C) combines a market-based structure with product groupings.
• D) turns a horizontal organizational structure into a vertical one.
• E) groups products according to the distribution system that is used.

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Definitions:

Profit-Maximizing Level

The optimal point at which the difference between total revenue and total cost is the greatest, indicating the highest possible profit for a firm.

Short Run

a period in economics during which at least one input is fixed and cannot be changed, limiting a firm's ability to adjust production.

Fixed Costs

Expenses that do not change in proportion to the activities of a business within a certain range of operation, such as rent, salaries, and insurance.

Monopolistically Competitive

A market structure where many firms sell products that are similar but slightly differentiated, allowing them some control over pricing.