Author Question: Which of the following is true? a. Decision making should never be centralized b. When ... (Read 61 times)

lracut11 · **on:** Jul 1, 2018

Which of the following is true?
a. Decision making should never be centralized
b. When decentralizing decision making, figure out a way to transfer information to the decision maker
c. When decentralizing decision making, strengthen incentive compensation schemes
d. When decentralizing decision making, weaken incentive compensation schemes

Question 2

Assume a firm has the following cost and revenue characteristics at its current level of output: price=10.00 . average variable cost=8.00 and average fixed cost =4.00 . This firm is
a. incurring a loss of 2.00 per unit and should shut down.
b. realizing only a normal profit.
c. realizing an economic profit of 2.00 per unit.
d. incurring a loss per unit of 2.00 . but should continue to operate in the short run.