In the ________ Model, Managers Select Actions Slightly Different from Past

question 55

Multiple Choice

In the ________ model, managers select actions slightly different from past actions.

• A) incrementalist
• B) Garbage can
• C) rational
• D) Carnegie

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Definitions:

Socially Optimal

A situation in economics where resources are allocated in the most efficient way from a societal perspective.

Pigouvian Tax

A tax imposed on activities that generate negative externalities, intended to correct an undesirable or inefficient market outcome by being equal in value to the externality.

Positive External Benefits

benefits that result from a product or service's use that affect someone other than the direct buyer or seller, often leading to social gains.

Optimal Amount

The quantity of a good or service that achieves the best possible balance between costs and benefits.