Scenario A

question 61

Multiple Choice

Scenario A. You and your classmates are debating the true meaning of the word "economy" in a manufacturing context. Anil says that to have economy, the company must work for lower costs per unit of production. Bob argues that having economy means using the same company resources to make more than one thing. Christine says that having economy means avoiding the costs of growing too large and creating waste.
-Christine defines "economy" in a manufacturing context as

• A)diseconomies of scale.
• B)diseconomies of scope.
• C)economies of scale.
• D)economies of scope.
• E)economies of size.

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Definitions:

Vertical Communication

The exchange of information and messages between different levels of an organization's hierarchy, including upward and downward communications.

Horizontal Communication

The exchange of information, messages, or communication across the same levels of an organization or among peers.

Downward Communication

The flow of information from higher levels of an organizational hierarchy to lower levels, typically involving directives, updates, and feedback.

Pent-up Emotions

Refers to feelings that a person has suppressed or not expressed over a period of time.