All of the following describe the conflict between divisions EXCEPT
a. Divisional managers are rewarded for the efficiency of their divisions
b. managers of profit centers care too little about the effects of their decisions on other divisions
c. managers are rewarded only for how well their own division is run
d. corporate executives cannot tell when one divisional manager's decision is appropriate or not
a
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Suppose a manager is interested in implementing third-degree price discrimination. The manager knows that the price elasticity of demand for Group 1 is ?2 and the price elasticity of demand for Group 2 is ?1.2. Based on this information alone we can conclude that the price charged to Group 2 will be:
A. higher than the price charged to Group 1. B. the same as the price charged to Group 1. C. lower than the price charged to Group 1. D. There is insufficient information to determine whether Group 2 will have a higher, lower, or the same price as Group 1.
The equation of exchange states that the relationship among the money supply (M), the price level (P), the velocity of money (V) and real output (Y) is
a) MP = VY b) M/P = YV c) PV = MY d) MV = PY e) Y/V = MP