Which of the Following Statements Is True of the Organizational

question 5

Multiple Choice

 Which of the following statements is true of the organizational design and the life cycle of a firm?

• A) Once a firm reaches maturity, the emphasis on coordination generally increases.
• B) The nature of leadership should remain stable as the firm keeps evolving.
• C) As a firm matures, it tends to emphasize division of labor.
• D) Start-up firms are characterized by more job specialization.

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Definitions:

Economies of Scale

Reductions in per-unit cost that organizations achieve through expanded production scales, where larger output volumes usually mean decreased costs per unit.

Long-run Average Total Cost

The average cost per unit of output when all inputs, including capital, can be varied, and economies of scale are accounted for.

Long-run Total Cost

The overall expenses incurred by a firm when all inputs are variable, reflecting costs over a time when firms can adjust all factors of production.

Long-run Average Total Cost

The per unit cost of production when all inputs, including both fixed and variable costs, are adjusted to their optimal levels over time.