The Most Successful Firms Are Getting Leaner by Focusing on Their

question 169

Short Answer

The most successful firms are getting leaner by focusing on their core competencies, but these new business models call for
environmental management.
unprecedented coordination.
new corporate boundaries.
unprecedented funds.
none of these are correct

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Definitions:

Long Run

A period of time in economics during which all factors of production and costs are variable, allowing for full industry adjustment.

Diseconomies Of Scale

Situations where a firm's costs per unit increase as the scale of production increases, typically due to inefficiencies that arise from becoming too large.

Diminishing Returns

A principle stating that if one input in the production of a commodity is increased while other inputs are held fixed, a point will eventually be reached at which additions of the input yield progressively smaller, or diminishing, increases in output.

Diminishing Returns

A principle in economics that states as one input variable is incrementally increased, there comes a point when the rate of resultant output begins to decrease.