A disadvantage associated with grouping jobs on the basis of functional specialty is that
A. managers tend to ignore the interdependencies among units that might lower a firm's value.
B. managers rely on implicit understanding and informal relationships.
C. employees have to seek ratification from managers for initiation and implementation of decisions.
D. employees concentrate more on achieving departmental goals rather than customer satisfaction.
Answer: D
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One way a monopoly can convert additional consumer surplus into economic profit is to
A) lower prices. B) raise prices. C) price discriminate. D) become more competitive. E) produce where price equals average total cost.
At the end of the future period, in the real intertemporal model with investment
A) the firm's capital becomes useless and is thrown away. B) the firm's capital is used to produce more capital for the distant future. C) the firm can convert capital one-for-one into consumption goods. D) the firm's capital is converted into labor.