Economies of Scale

question 50

Multiple Choice

Economies of scale

• A)Exist in both the short run and the long run.
• B)Explain why average variable and average total costs decline in the short run.
• C)Explain why average total costs decline as output increases in the long run.

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Definitions:

External Problems

Issues or challenges that originate outside of an organization which can impact its performance or operations, such as market competition, regulations, or economic conditions.

Organizational Development (OD)

A planned, organization-wide effort to increase an organization's effectiveness and health through interventions in its processes, utilizing behavioral science knowledge.

Organization's Culture

The set of shared beliefs, values, norms, and practices that shapes the behavior and thinking of all members within an organization.

Unfreeze, Change, Refreeze

A three-stage model in change management where 'unfreeze' means preparing for change, 'change' is the implementation of the change, and 'refreeze' is solidifying or stabilizing the change.