Minimum Efficient Scale Refers to the Lowest Level of Output

question 36

Multiple Choice

Minimum efficient scale refers to the lowest level of output at which

• A) the firm can earn a profit.
• B) average cost is minimized.
• C) the firm will operate.
• D) the average cost curve is downward sloping.

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Definitions:

Sales Performance

A measure of how effectively a company's sales team achieves sales goals.

Job Enrichment

A management strategy that enhances job satisfaction by adding more meaningful responsibilities, challenges, and autonomy to an employee's role.

Scientific-Management Approach

A theory of management that analyzes and synthesizes workflows with the objective of improving labor productivity and economic efficiency.

Human-Relations Approach

A management theory emphasizing the importance of understanding human behavior, social needs, and group dynamics within the workplace.