Which of the following is TRUE?
a. Maximizing division profits will always lead to maximizing company profit
b. Maximizing division profits will always lead to minimizing company profit
c. Maximizing division profits can sometimes lead to reducing company-wide profit
d. Maximizing division profits has no effect on company-wide profits
c
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If the demand for a product is elastic, then a rise in price will
a. cause total spending on the good to increase. b. cause total spending on the good to decrease. c. keep total spending the same, but reduce the quantity demanded. d. keep total spending the same, but increase the quantity demanded.
The elasticity of supply coefficient for bicycles is estimated to be equal to 1.5 . It is expected, therefore, that a 4% increase in price would lead to:
a. a 4% decrease in the quantity of bicycles supplied. b. a 4% increase in the quantity of bicycles supplied. c. a 6% decrease in the quantity of bicycles supplied. d. a 6% increase in the quantity of bicycles supplied.
What is the main problem regulators face when setting a price for a natural monopoly?
a. It is difficult to determine the quantity and price that the monopolist wants to produce. b. It is difficult to determine what the monopolist’s marginal cost is. c. It is difficult to determine the quantity consumers want to buy at the monopolist’s price. d. It is difficult to determine the price that doesn’t bankrupt the firm but doesn’t overcharge consumers.
Five large unions withdrew from the AFL-CIO in 2005, taking with them ____% of the federation's members.
Fill in the blank(s) with the appropriate word(s).