External Economies of Scale Arise When the Cost Per Unit

question 22

Multiple Choice

External economies of scale arise when the cost per unit

• A) rises as the industry and the average firm grows larger.
• B) remains constant over a broad range of output.
• C) falls as the industry and the average firm grows larger.
• D) falls as the industry grows larger and rises as the average firm grows larger.
• E) rises as the industry grows larger and falls as the average firm grows larger.

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Definitions:

Organizational Chart

A visual representation of the structure of an organization, showing the hierarchy of positions, relationships between them, and divisions of responsibility.

Job Descriptions

Formal documents that outline the duties, responsibilities, qualifications, and conditions of a particular role or job.

Coordination Through Standardization

is the process of establishing common routines and procedures across an organization to streamline operations and ensure consistency.

Standardizing Processes

Standardizing Processes involves creating uniform procedures or protocols to ensure consistency, efficiency, and quality in the execution of tasks or operations.