Decentralization May Duplicate a Company's Costs Because Each Business Unit

question 111

True/False

Decentralization may duplicate a company's costs because each business unit can contain its own purchasing department.

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Definitions:

Economic Profit

The gap between the total income and the sum of all expenses, covering both direct and indirect costs.

Perfectly Elastic

A situation in economics where the quantity demanded or supplied changes by an infinite amount in response to any change in price; highly responsive.

Profit-Maximizing

A company's strategy aimed at adjusting their level of output to generate the highest possible profit.

Demand Schedule

A table that lists the quantity of a good that consumers are willing and able to purchase at different prices over a specified period of time.