If Marginal Cost Is Less Than Average Cost, Average Cost

question 73

True/False

If marginal cost is less than average cost, average cost must fall when more units are produced.

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Definitions:

External Environment

The outside factors and influences that affect the operation and performance of an organization.

Centralize

Refers to the process of concentrating decision-making authority and control at the top levels of an organization.

Tall Hierarchies

Organizational structures with multiple levels of management and authority, sometimes leading to slower decision-making processes.

Employee Empowerment

Practices that give employees more autonomy, responsibility, and authority over their work, aiming to increase engagement and productivity.