If Significant Economies of Scale Continue as Output Increases

question 69

Multiple Choice

If significant economies of scale continue as output increases,

• A)then small firms enjoy a cost advantage over large firms
• B)minimum efficient scale is small relative to market demand
• C)we have the case of a natural monopoly
• D)the market will disappear in the long run.
• E)all firms will become large.

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Definitions:

Sense of Urgency

The perceived need to act immediately in order to meet objectives or respond to opportunities and threats.

Business Strategy

A plan or set of decisions that guide a company in achieving specific business objectives and gaining a competitive edge.

Functional Strategy

Functional Strategy involves detailed planning and management of tasks within specific departments or functions of an organization to achieve the broader strategic objectives.

Corporate Strategy

A long-term plan of action designed to achieve a particular goal or set of goals within a corporate entity.