What Measures the Practicality of a Technical Solution and the Availability

question 57

Multiple Choice

What measures the practicality of a technical solution and the availability of technical resources and expertise?

• A) Economic feasibility
• B) Operational feasibility
• C) Schedule feasibility
• D) Technical feasibility

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Definitions:

Average Costs

The total costs (fixed and variable) divided by the total output, indicating the cost per unit of output produced.

Decreasing Returns to Scale

A situation in which, when the scale of production is increased, the output increases at a proportionally lower rate.

Minimum Efficient Scale

The smallest level of production a company can achieve while still taking full advantage of economies of scale in terms of costs per unit.

Long-Run Average Cost Curve

A graphical representation showing the lowest average cost of producing any output level when all inputs can be varied.