A Manufacturing Company That Benefits from Lower Costs Per Unit

question 198

Multiple Choice

A manufacturing company that benefits from lower costs per unit as it grows is an example of a firm exhibiting:

• A)increasing returns to scale.
• B)decreasing returns to scale.
• C)increasing opportunity costs.
• D)scale reduction.

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Definitions:

Objective Attainment

The process or strategy employed to achieve specific goals or targets set by an individual or organization.

Management By Objectives (MBO)

A strategic management model where objectives are defined by managers and employees to ensure that everyone is working towards common goals.

Subordinates

Employees or team members who are in a lower position or rank than others and typically report to a supervisor or manager.

Participation

The act of taking part or being involved in an activity, decision-making process, or event.