When is centralization of decision-making desirable?
QUESTION 2The size of a firm relative to the size of the market can be referred to as
A) an economic profit guarantee
B) a marginal profit factor
C) core competency
D) economies of scale
QUESTION 3Firms with union contracts do a large portion of the painting jobs in the county. If the painters' union wins a 12 percent wage increase, what will most likely happen in the non-unionized part of the painters' labor market?
a. Nonunion painters will also get 12 percent wage increases.
b. There will be no change in the nonunionized part of the painters' labor market because these sectors are not connected.
c. Wage rates in the nonunion sector are likely to fall.
d. Many nonunion painters will likely find work for a firm with a union contract.
QUESTION 4How does a firm's organizational structure affect its market performance?
QUESTION 5Warranties and guarantees can serve as a(n)
A) barrier to entry
B) brand name
C) incomplete contract
D) source of competition
QUESTION 6Unions, by nature, must ____ their membership in order to ____ wages.
a. open; lower
b. open; raise
c. restrict; lower
d. restrict; raise
QUESTION 7Identify the correct statement about relationships depicted in an organization chart.
a. A line that links an individual/division with the same at a lower level depicts informal authority of the former over the latter.
b. Equality on the chart for individuals A and B must mean they both have the same authority in practice.
c. It shows all relations between employees of an organization.
d. A line that links an individual/division with the same at a lower level depicts formal authority of the former over the latter.
Quick Reply
