__________ Refers to a Clearly Defined Line of Authority in the Organization

question 55

Multiple Choice

__________ refers to a clearly defined line of authority in the organization that includes all employees.

• A) The scalar principle
• B) Unity of command
• C) Work specialization
• D) Division of labor
• E) Span of management

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Definitions:

Minimum Efficient Scale

The smallest amount of production a company can achieve while still taking full advantage of economies of scale with regards to minimizing its costs.

Long-Run ATC

The average total cost of production when all inputs, including capital, are variable and the scale of production can change.

Diseconomies of Scale

The phenomenon where operational costs per unit increase as the output increases, often due to inefficiencies or management challenges.

Natural Monopoly

A market structure where a single supplier is most efficient in producing or providing goods or services due to high fixed or startup costs, making competition less viable.