Question

The different business units at Carlton Motors compete against each other for technology, supplies, equipment, and human talent. As a result, the management and the business units encounter frequent organizational conflicts. These conflicts are most likely to be a result of what?

Answer 1

Scarcity

Step-by-step explanation:

Resources at Carlton Motors are scarce (resources are always scarce because needs are unlimited), and are not being allocated efficiently, therefore, the different units are fighting amongst each other for those resources.

This is a very negative situation for the business and can cause less economic growth, or even degrowth. A company, ideally, should not have internal fights, and instead, competitive energy should be focused on the outside, in competing against other companies.