If Technological Innovation Occurs When a Firm Is Experiencing Diseconomies

question 15

Multiple Choice

If technological innovation occurs when a firm is experiencing diseconomies of scale:

• A) the long-run average total cost curve will shift down but will still rise as output expands.
• B) long-run average total costs will remain the same as output expands.
• C) short-run average total costs will fall as output expands.
• D) product prices will rise, leading to inflation.

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Definitions:

Departmental Linkages

The connections and relationships between different departments within an organization, which facilitate coordination and communication.

Matrix Differentiation

A network-like organizational structure that allows for multiple reporting lines and integrates functional and project-based responsibilities.

Spatial Differentiation

The degree to which locations of an organization's units are physically separated, impacting coordination and operational efficiency.

Circular Differentiation

The process of distinguishing entities or elements in a system based on their roles, attributes, or positions in a circular, rather than linear, hierarchy.