When the ownership of the different stages of production of a commodity lies with different individuals, it becomes difficult to take decisions on capacity expansion because of all the following reasons, EXCEPT:
A)differences in attitudes toward risk.
B)differences in motivation.
C)different degrees of risk exposure.
D)different abilities to hedge themselves.

Question

Quizplus · Accepted Answer

Differences in motivation do not inherently affect decision-making on capacity expansion in the context of ownership across different stages of production. The other options (A, C, D) directly impact decision-making due to varying risk perceptions and management capabilities among owners.

When the Ownership of the Different Stages of Production of a Commodity