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TrueBlue uses an MBO program for its performance reviews. Ranelle, the manager, and Louis, the subordinate, are working through that process. Ranelle has listed her goals and metrics for Louis, and Louis has proposed his own goals and metrics. What is the next step in the process?
Marginal Cost
The additional cost resulting from the creation of one more unit of a product or service.
Economies of Scale
The cost advantages that enterprises obtain due to their scale of operation, with cost per unit of output generally decreasing with increasing scale as fixed costs are spread out over more units of output.
Unit Costs of Production
The total expense incurred by a company to produce, store, and sell one unit of a particular product or service.
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