Firms may suffer from X-inefficiency because of organizational slack.

Vendor: CIMA
Product: BA1
Update on: May 22, 2026
Questions: 468

CIMA BA1 Question Answer

Firms may suffer from X-inefficiency because of organizational slack. All of the following would lead to organizational slack except which one?

Uncertainty about future demand

Managers become more cautious

A complex organizational structure in the firm

The number of rival firms increases

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