In a Focused Factory Strategy, an Organization

question 24

Multiple Choice

In a focused factory strategy, an organization:

• A)Performs only one function in order to likely perform it better.
• B)Concentrates on building competitive advantage by operating only one facility.
• C)Diversifies its products and services.
• D)None of the above.

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Definitions:

Average Variable Cost

The total variable cost divided by the quantity of output produced, representing the variable cost per unit of output.

Marginal Costs

refers to the cost associated with producing each additional unit of a product or service.

Average Total Cost

The total cost of production divided by the quantity produced, representing the per-unit cost of production, including both fixed and variable costs.

Diminishing Marginal Returns

A principle stating that as more of a variable input is added to a fixed input, beyond some point, the additional output produced from the additional input will eventually start to decrease.