Answer the Question on the Basis of the Following Total

question 89

Multiple Choice

Answer the question on the basis of the following total utility data for products L and M. Assume that the prices of L and M are $3 and $4, respectively, and that the consumer's income is $18 How many units of the two products will the rational consumer purchase?

• A) 3 of L and none of M
• B) 4 of L and 2 of M
• C) 3 of L and 5 of M
• D) 2 of L and 3 of M

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Definitions:

Centralization

The degree to which decisions are made at the top of the organization.

Simple Structure

A centralized form of organization that emphasizes a small technical and support staff, strong centralization of decision-making in the upper echelon, and a minimal middle level.

Upper Echelon

A top-level executive team in an organization.

Vertical Differentiation

The organization of a company's hierarchy levels to distinguish roles and responsibilities across different ranks.