Average Cost Curves Decline Because

question 64

Multiple Choice

Average cost curves decline because

• A)fixed cost is spread out over larger amounts of production.
• B)it becomes cheaper to produce an infinite amount of goods.
• C)additional units of production are inferior.
• D)variable costs increase with each additional amount of production.

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Definitions:

Concurrent Engineering

Is a method of designing and developing products in which different stages run simultaneously, rather than consecutively, to reduce product development time.

Informal Communication

The exchange of information without the constraints of formal structures or channels in an organization.

Coordinating Mechanism

Strategies or systems used within organizations to align activities, tasks, and functions among different departments or teams.

Span of Control

The number of subordinates that a manager or supervisor can directly control.