Kevin Is One of Four Product Managers in One Organization

question 11

Multiple Choice

Kevin is one of four product managers in one organization, and Lisa is vice president of sales for all products in another organization. Kevin's organization reflects a __________ design while Lisa's reflects a __________ design.

• A) centralized, decentralized
• B) decentralized, centralized
• C) divisional, functional
• D) functional, divisional

---

Definitions:

Price of Capital

The cost of using capital goods, represented by interest rates, lease payments, or other measures of the cost of borrowing or using capital.

Marginal Revenue Product

The additional revenue generated from employing one additional unit of a resource, such as labor or capital.

Complementary Resource

A resource or product that enhances or is necessary for the use of another resource or product, such as printers for computers.

Substitution Effect

The alteration in buying habits caused by shifts in relative prices, prompting consumers to swap out higher-priced goods for more affordable options.