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If D Represents the Level of Decentralization of Corporate Decision

Question 40

Multiple Choice

If D represents the level of decentralization of corporate decision making,and A and C are positive constants,then Benefits = B × D and Costs = A × D + C × D2.The optimal level of decentralization occurs where:


A) benefits equal costs.
B) costs are equal to zero.
C) D = BD - AD - CD2
D) D = (B - A) / 2C

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