When Organizational Design Is Poor, ________

question 72

Multiple Choice

When organizational design is poor, ________.

• A) managers usually increase the number of products offered
• B) an organization will decline
• C) bureaucratic costs are lower
• D) managers usually increase R&D expenses

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Definitions:

Marginal Product

The extra output or benefit received from using one additional unit of a resource.

Opportunity Cost

The cost of an alternative that must be forgone in order to pursue a certain action, the benefits you could have received by taking an alternative action.

Marginal Cost

The cost added by producing one more item of a product, a crucial factor in economic decision-making regarding production levels.

Economic Profit

The difference between a firm’s total revenues and its total costs, including both explicit and implicit costs, representing the actual financial gain.