The Usage of Computers on a Large Scale Facilitated Widespread

question 22

Multiple Choice

The usage of computers on a large scale facilitated widespread changes in organizations in the twentieth century.Given this, which of the following statements will be true?

• A)The LRAC of a firm operating with the old organizational structure is likely to be lower than the firms with the new structure.
• B)After adopting a new organizational structure that can effectively manage large-scale operations, a firm is likely to have lower LRAC whose minimum is at a higher output.
• C)The LRAC of a firm with a new organizational structure will be higher and to the right of a firm operating with the old organizational structure.
• D)After adopting a new organizational structure that can effectively manage large-scale operations, a firm's LRAC is likely to shift downward to the left.

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Definitions:

Injunctions

Legal orders issued by a court requiring a person or entity to do or cease doing a specific action.

Liability Rules

A set of legal principles governing who is financially responsible for the harm or damages caused by one party to another.

Property Rights

The legal rights to possess, use, and dispose of assets, including real estate, intellectual property, and personal possessions.

MSC

The marginal social cost of producing one additional unit of a good or service, which includes both the private cost and any external costs to society.