Larger Firms Will Often Have Lower Minimum Per-Unit Costs Than

question 108

Multiple Choice

Larger firms will often have lower minimum per-unit costs than smaller firms because

• A) employee shirking is less of a problem.
• B) large-scale output allows greater specialization for both labor and machines in the production process.
• C) mass production techniques, with high setup and development costs, are appropriate only when a small output is planned.
• D) all of the above are correct.

---

Definitions:

Reliability

The degree to which an assessment tool produces stable and consistent results over time.

Civic Virtues

Behaviors and attitudes that contribute to the well-being and cohesion of a community, promoting the common good.

Institution

An established organization or foundation, especially one dedicated to education, public service, or culture.

Civic Virtues

The qualities that add to the betterment of the community and contribute to the responsibilities and roles of a citizen.