When There Are Economies of Scale, Larger and Fewer Firms

question 182

True/False

When there are economies of scale, larger and fewer firms bring cost efficiencies even as they reduce price competition.

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Definitions:

Comparative Performance Appraisal Methods

A range of techniques used to evaluate the performance of employees by comparing them against certain standards or against the performance of other employees.

Ranking

A method of ordering or classifying entities or individuals based on a set of criteria, often used for evaluation or comparison purposes.

Paired Comparison

A method of evaluation that involves comparing each item in a list with every other item in pairs to establish preferences or rankings.

Forced Distribution

A method in performance management where employee evaluations are distributed along a bell curve, forcing a ranking of employees from top to bottom.