If a Firm Decreases Its Plant Size and Finds That

question 98

Multiple Choice

If a firm decreases its plant size and finds that its long-run average costs have decreased, then

• A)its labor is more productive in a smaller plant.
• B)its diseconomies of scale are less.
• C)the firm should reduce its plant size even more.
• D)the firm is now profitable.

Understand the importance of flexibility and adaptive planning in budgeting.

Learn the sequence in which different component budgets are prepared.

Identify methods to motivate employees through budgeting.

Recognize the relationship between budgeting and performance evaluation.

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Definitions:

Self-Efficacy

An individual's belief in their own capacity to execute behaviors necessary to produce specific performance attainments.

Conflict

Being torn in different directions by opposing motives.

Psychological Tests

Standardized measures used to assess various mental functions and behaviors.

Psychological Hardiness

A personality trait characterized by a sense of control, commitment, and challenge in facing stressors.