What Are the Six Factors Used by EIGRP to Calculate

question 10

Essay

What are the six factors used by EIGRP to calculate a route metric?

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Definitions:

Large-Scale Business

An enterprise or organization that operates on a significant scale, typically involving extensive operations, large numbers of employees, or substantial revenue.

Diseconomies of Scale

The phenomenon where production costs increase as a firm or industry grows, leading to reduced efficiency and higher per-unit costs.

Law of Diminishing Returns

The principle that adding more of one factor of production, while keeping others constant, will eventually yield lower per-unit returns.

Economic Profit

The surplus remaining after deducting both explicit and implicit costs from total revenues, emphasizing a firm's financial performance beyond just its accounting profit.