Final answer:
Companies with a team-based organizational structure often see rapid growth and diverse product lines thanks to their ability to adapt quickly to changes in the market. While such structures promote flexibility and collaboration, their productivity benefits are still being studied.
Step-by-step explanation:
Companies that have a team-based organizational structure generally experience rapid growth and have broad, diverse product lines. This structure is increasingly popular as it allows for flexibility and rapid response to changes in various factors such as technology, economics, and globalization. In such organizations, work is delegated to work teams that combine diverse skills and expertise, rather than relying on individual effort. This contrasts with traditional hierarchies and has been driven by a shift towards a flatter structure where collaboration and feedback are encouraged across all levels of the company. However, the effectiveness of team structures in increasing productivity is still an active area of research, indicating they are not universally the best option.
With the advent of monopolistic competition, companies have powerful incentives for innovation to differentiate their products and attract consumers, though this can lead to higher expenses on advertising and marketing. Additionally, market structures such as oligopolies often present sustained profit opportunities for firms due to barriers to entry, though they may also stifle product innovation and quality services when there is a lack of competitive pressure.