When Organizational Parts Interact to Produce a Joint Effect That

question 70

True/False

When organizational parts interact to produce a joint effect that is greater than the sum of the parts acting alone, synergy occurs.

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Definitions:

Economies of Scale

The cost advantages that enterprises obtain due to their scale of operation, with cost per unit of output generally decreasing with increasing scale.

Economic Efficiency

A state in which resources are optimally allocated to serve each person in the best way while minimizing waste and inefficiency.

Entry Barriers

Obstacles that make it difficult for new competitors to enter a market, including high startup costs, stringent regulations, and established brand loyalty.

Brand Loyalty

A customer's consistent preference for one brand over all others, often reflected in repeated purchases.