Assume That a fiRm Is Currently Operating at Minimum Efficient

question 5

Multiple Choice

Assume that a firm is currently operating at minimum efficient scale and expands its scale of operations and workforce substantially. Which of the following is most likely to happen?

• A) The firm's average total cost is likely to remain unchanged.
• B) The firm may experience diseconomies of scale.
• C) The firm may become the cost leader in the market.
• D) The firm is likely to experience productivity gains.

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Definitions:

Focused Differentiation

A business strategy where a company targets a specific market niche, offering unique products or services that stand out from competitors.

Subscription-Based

A business model where customers pay a recurring price at regular intervals to access a product or service, rather than a one-time purchase.

Internet Business Model

A strategy outlining how an organization will create value and make money through the use of the internet.

Emerging Technologies

New, innovative technologies that are currently developing or will be developed over the next few years, and which are expected to significantly alter the business and social environment.