When a Firm Is Operating at Its Minimum Efficient Scale

question 34

Multiple Choice

When a firm is operating at its minimum efficient scale, its

• A)short-run average total cost of production is minimized
• B)long-run marginal cost of production is minimized
• C)long-run average cost of production is minimized
• D)long-run profit is maximized
• E)profit is at a maximum

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Definitions:

Direct Supervision

The practice of overseeing and guiding employees' work and tasks closely and in person.

High-Performance Work Systems (HPWS)

Are organizational approaches that integrate several human resource practices, including selective hiring, extensive training, and employee involvement, to enhance productivity.

Decentralized Decision Making

A managerial strategy where decision-making authority is distributed among various levels within the organization.

Virtual Organizations

Are companies that operate primarily online, leveraging technology to enable remote work, collaboration, and service delivery without a traditional physical presence.