A Meditation Class Meets on the Second Floor of a Building;

question 114

Multiple Choice

A meditation class meets on the second floor of a building; the first floor is a nightclub.The loud music from the club disturbs the classes.The club could be soundproofed for a cost of $5, 000 or move at a cost of $8, 000.The class can't soundproof enough to overcome the music, but could be moved for $4, 000.According to Coase,

• A)the club should be soundproofed so both businesses can stay open
• B)the club should be soundproofed because it is the one generating the externality
• C)the club should move rather than be soundproofed because eliminating an externality is better than compensating for it
• D)the class should move because it can eliminate the externality at a lower cost than can the nightclub
• E)whichever business has been there longer has the overriding property right; the other should adjust

Understand the application of incremental analysis across various managerial decisions, such as special orders, equipment replacement, and further processing decisions.

Understand different organizational structures and their characteristics.

Comprehend the concept and process of organizational change including external and internal forces.

Recognize various organizational development interventions and their purposes.

---

Definitions:

Dopamine

A neurotransmitter in the brain that plays a key role in regulating mood, motivation, pleasure, and reward.

Endorphins

These are neurotransmitters produced in the brain that act as natural painkillers and are also associated with feelings of pleasure and well-being.

Serotonin

A neurotransmitter that contributes to feelings of well-being and happiness, also involved in regulating mood, appetite, and sleep.

Sympathetic

Pertaining to the part of the autonomic nervous system that typically increases bodily readiness for action in response to stress.