The Efficient Scale of a Firm Is Achieved When

question 143

Multiple Choice

The efficient scale of a firm is achieved when:

• A)average variable cost is minimised
• B)fixed costs are spread over the most units
• C)marginal costs are at a minimum
• D)average total costs are minimised

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Definitions:

Benefit of Objectives

The advantage of having clear and defined goals which guide actions and decisions, improving focus and facilitating measurement of progress.

Long-Term Goals

Objectives or targets that are planned to be achieved over an extended period, typically over one year.

Strategic Planning

A methodical approach to imagining a preferred future, then converting this vision into general aims or targets and outlining a series of actions to reach these goals.

Operational Planning

The process of planning specific day-to-day activities and resources needed to achieve tactical objectives and support strategic goals of an organization.