An Organization Wherein All Major Decisions Are Made by Its

question 43

Multiple Choice

An organization wherein all major decisions are made by its middle- and lower-level managers is said to be a:

• A) divisional structure.
• B) strategic constituency.
• C) decentralized organization.
• D) mechanistic structure.
• E) functional structure.

---

Definitions:

Long-Run Equilibrium

A market condition where all inputs can be adjusted, firms are entering and exiting the market, and no economic profits are made, leading to a state of perfect competition.

Monopolistic Competition

An economic setup in which numerous firms offer products that are alike but not the same, enabling competition to revolve around quality, pricing, and promotional strategies.

Average Total Cost

The average cost per unit of output, calculated by dividing the total cost by the quantity of output produced.

Perfect Competition

A market structure characterized by a large number of small firms, a homogeneous product, perfect information, and free entry and exit, leading to price-taking behavior.