Hayle Motors specializes in the production of fire trucks and has production units in five countries. Which of the following is NOT true about Hayle Motors?
a. It is a geographically divisionalized organization.
b. It is divisionalized along product lines.
c. Each of its five production units in the five countries function as stand-alone firms.
d. Activities in each of its five units may be categorized functionally.
QUESTION 2Michael Potter argued that ____ led to firms earning economic profit over extended periods of time.
A) the ease of substitution
B) market power
C) the extent of consumer power
D) degree of competition from foreign tariffs
QUESTION 3Where monopsony exists, ____ workers will be hired at ____ wages than if perfect competition prevailed in a labor market.
a. fewer; lower
b. fewer; higher
c. more; lower
d. more: higher
QUESTION 4Categorization of activities in an organization along product or geographic lines is called:
a. globalization.
b. decentralization.
c. functionalization.
d. divisionalization.
QUESTION 5What is not included in Porter's five forces representation?
A) the threat of new entrants.
B) the threat of substitute products.
C) the indifference of customers.
D) the threat of new entrants.
QUESTION 6Other things being equal, a decrease in the workplace amenities, such as decreased health care and less generous vacation options, would tend to shift the labor supply curve to the ____, thereby causing the market wages to ____.
a. right; fall
b. right; increase
c. left; fall
d. left; rise
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