Managerial Economics & Organizational Architecture 6th Edition by James Brickley , Clifford Smith ,Jerold Zimmerman

Exercise 1

Assume that some firms within the same industry are observed to be multidivisional whereas others are functionally organized. Assume further that all firms are about the same size and have existed for a long period of time in their current organizational structures. Is this observation inconsistent with the "survival of the fittest" concept discussed in class Explain.