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Question: A U-form firm's management is considering an important decision that will affect the entire company. Why don't they just set up a meeting attended by delegates from the various departments? Each delegate will bring specialized information, and they can negotiate among themselves to produce a recommendation that considers all of the information generated in the departments. Explain why we never see this practice. Is your above answer consistent with the observation that firms often retain business strategy consultants who meet with the various departments and then recommend a policy to management? Why the difference?

Microeconomics, Economics

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