One Occasion in Which Managers Should Work to Stimulate Functional

question 12

Multiple Choice

One occasion in which managers should work to stimulate functional conflict is when:

• A) there has been a tendency to overuse the devil's advocate perspective.
• B) group members are not cohesive.
• C) there is only one source of conflict.
• D) there is an occurrence of groupthink.

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Definitions:

Economic Rents

Extra earnings or return above the normal expected return of an investment or economic activity.

Reallocation

The process of redistributing resources or assets from less productive uses to more productive ones in order to enhance efficiency and economic output.

Diminishing Returns

A rule that asserts when one input in the production process is augmented and the rest remain unchanged, the resultant extra production will ultimately diminish.

Marginal Revenue Product

The additional revenue generated by employing one more unit of input, such as labor or capital.