Which of the Following Is a Disadvantage of a Matrix

question 68

Multiple Choice

Which of the following is a disadvantage of a matrix structure?

• A) The power struggle between two managers produce conflicting demands on employees.
• B) Expertise to solve problems is unavailable at the team level.
• C) Subunits focus on functional goals rather than on organizational objectives.
• D) A lack of communication develops between functional units.

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Definitions:

Substitution Effect

The change in consumption patterns due to a change in relative prices, causing consumers to substitute one good for another more price-friendly option.

Marginal Productivity

The extra output that is produced by using one more unit of a factor, keeping all other factors constant.

Highly Substitutable

Refers to goods or services that are readily replaced with alternatives by consumers due to minimal differences in characteristics or functionality.

Unit Costs of Production

The average cost incurred in producing one unit of a good, calculated by dividing the total cost of production by the number of units produced.