What Is Minimum Efficient Scale? What Is Likely to Happen

question 306

Essay

What is minimum efficient scale? What is likely to happen in the long run to firms that do not reach minimum efficient scale?

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Definitions:

Competency

An area of personal capability that enables employees to perform their work successfully.

Personal Capability

Refers to an individual's ability to perform tasks, solve problems, and make decisions in work and personal life.

Successfully

Achieving a desired outcome, goal, or objective through effective planning, execution, and performance.

Job Design

The process of organizing tasks, duties, and responsibilities into a productive unit of work to achieve specific objectives.