In the Long Run, Firms in Many Industries Often Experience

question 6

Multiple Choice

In the long run, firms in many industries often experience a falling average total cost curve as a result of:

• A) gains through trade.
• B) increasing marginal returns.
• C) economies of scale.
• D) lower fixed costs.

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Definitions:

Operations Technology

Is the combination of resources, knowledge, and techniques that creates a product or service output for an organization.

Artifacts

Objects created by humans that are typically of cultural or historical interest.

Adhocracy

Emphasizes shared, decentralized decision making; extreme horizontal specialization; few levels of management; the virtual absence of formal controls; and few rules, policies, and procedures.

General Environment

Is the set of cultural, economic, legal–political, and educational conditions found in the areas in which the organization operates.