When decision rights are decentralized, typically
a. decisions are being moved to those with less of the relevant information
b. decisions are being moved to those with stronger incentives to make good decisions
c. decisions are being moved to those with more of the relevant information
d. decisions are being moved from those with weaker incentives to make good decisions
c
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Suppose the production of DVD players can be represented by the following production function: q = L0.4K0.4. Which of the following statements is (are) TRUE?
A) The production function has decreasing returns to scale. B) The marginal productivity of labor falls as labor increases in the short run. C) Capital and labor can be substituted for one another. D) All of the above.
A profit-maximizing firm should keep expanding production so long as marginal cost exceeds marginal revenue
a. True b. False Indicate whether the statement is true or false