When the Efficient Size of a Firm or Plant Is

question 7

True/False

When the efficient size of a firm or plant is significantly smaller than the total size of an industry, there will usually be numerous efficient firms/plants in that industry, and a cost-leadership strategy based on economies of scale will be rare.

---

Definitions:

Strategic Goals

Long-term, broadly defined targets an organization sets to achieve its vision and mission.

Available-for-Sale Securities

Debt or equity securities not classified as held-to-maturity or trading securities, recorded at fair value.

Interest Receivable

A term in accounting referring to interest revenue that is accumulated but has not yet been paid in cash.

Interest Revenue

Income earned from lending funds or investing in interest-bearing assets.