When a Firm Is Experiencing Economies of Scale

question 166

Multiple Choice

When a firm is experiencing economies of scale

• A) the MP curve slopes upward.
• B) the LRAC curve slopes downward.
• C) diminishing returns to labor have been suspended.
• D) the MC curve slopes downward.

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Definitions:

Manager Power

The ability or capacity of managers to influence the behavior of their team members or allocate resources within an organization.

Influence Tactic

Strategies used by individuals or groups to change the behavior or attitudes of others in a particular direction.

Political Skill

The ability to effectively understand others at work and use such knowledge to influence others to act in ways that enhance one's personal or organizational objectives.

Sources of Power

The origins from which an individual or organization derives the ability to influence others, such as through expert knowledge, authority, or social relationships.