most likely be minimized if too much power was centraliezd in one unit of the firm?
a) economics of scale
b) economics of svope
c) worldwide learning
d) location efficinices
Answer
Option c) is correct. Worldwide learning will most likely be minimized if too much power was centralized in one unit of the firm.
Reason:
Organizations learn when they take decisions for themselves, fail and make up for their mistakes. If all the power is concentrated in just one unit of the firm, the othr units will not be able to learn. This is because there will not be any sharing of information.
On the other hand, economies of scale and scope may still be possible. The firm may still work efficiently but not all will be able to learn from it.
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