-Dustin's Copy Shop Can Use Four Alternative Plants

question 331

Multiple Choice

-Dustin's copy shop can use four alternative plants. The figure above shows the average total cost curves for Plant 1 (ATC₁) , Plant 2 (ATC₂) , Plant 3 (ATC₃) , and Plant 4 (ATC₄) . Dustin's minimum efficient scale is

• A) 2,650 copies per day.
• B) 6,000 copies per day.
• C) 4,000 copies per day.
• D) More information is needed to determine the minimum efficient scale.

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Definitions:

Hierarchically Connected

Organized or structured in a way that entities are ranked one above the other according to status or authority.

Hierarchy of Authority

An organizational structure where entities are ranked according to levels of power and authority, usually from highest to lowest.

Increasing Authority

The process of granting more decision-making power or control to individuals or groups within an organization.

Staff Units

Assist the line units by performing specialized services to the organization.