What are some of the demerits of decentralization?
What will be an ideal response?
Local managers may have incentives to maximize their own utility as opposed to the firm's profits. Therefore, they might act in ways to jeopardize the team's value-creating capabilities. To prevent this, one must undertake direct monitoring or develop a clever compensation mechanism. But these are usually difficult and costly.
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As of late 2012, what was the all-time high price for an ounce of gold?
A) $1078 B) $1780 C) $7800 D) $14,163
Cost-benefit analysis does not employ interpersonal utility calculations
a. True b. False
An unexpected increase in the demand for accountants will lead to
a. an increase in their earnings and an expansion in the future supply of accountants. b. a decrease in the incentive of students to prepare for a career in accounting. c. a reduction in the current earnings of accountants, followed by a reduction in the future supply of accountants. d. a reduction in the employment of accountants but not their wage rates.
Based on the graphic for perfect competition versus monopoly, the consumer surplus for perfect competition is ______ the consumer surplus for monopoly.
a. greater than
b. less than
c. equal to
d. the opposite of