An optimal management hierarchy for given groups of executives

An important problem in economics is the construction of an effective minimal-cost management hierarchy for an economic system. A model for optimization of a management hierarchy is designed, a cost function is defined on a set of hierarchies consisting of exogenically given subdivisions (managers for supervising given groups), whereas other parts of a hierarchy may be formed arbitrarily and contain multiple subordination, etc. The optimal hierarchy for certain classes of cost functions is determined.