An Organization Whose Capacity Is on the Portion of the Average

question 187

Multiple Choice

An organization whose capacity is on the portion of the average unit cost curve that increases as output rises:

• A) has a facility that is below optimum operating level and should build a larger facility.
• B) has a facility that is above optimum operating level and should reduce facility size.
• C) is enjoying economies of scale.
• D) has utilization higher than efficiency.
• E) has a facility that is at optimum operating level.

---

Definitions:

Freewriting

A writing technique where the writer writes continuously for a set period without concern for spelling, grammar, or topic coherence, to unlock creativity or solve writing blockages.

Clustering

A method of organizing similar or related items, ideas, or information into groups for analysis or understanding.

Writing Process

The sequence of steps that writers follow to create a text, including prewriting, drafting, revising, and editing.

Planning Stage

The initial phase of a project or process where objectives are set, strategies are developed, and tasks are outlined.