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.

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Definitions:

Fluid Intelligence

An aptitude for intelligently tackling and finding solutions to issues in new situations, free from the constraints of learned facts.

Adult Years

The period in human life after adolescence, typically marked by full physical development and maturity.

Factors

Elements or conditions that contribute to a particular result or situation, often studied to understand complex processes or outcomes.

Alleviate Effects

The process of reducing the severity or intensity of negative outcomes or impacts.