Returns That Occur in the Long Run When an Increase

question 3

Multiple Choice

Returns that occur in the long run when an increase in the quantity of output decreases average total cost are called:

• A)economies of scale.
• B)diseconomies of scale.
• C)constant returns to scale.
• D)minimum average total cost.

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Definitions:

Lean Production

A manufacturing philosophy that emphasizes the minimization of waste and maximization of efficiency within the production process.

Competitive Advantage

Allows an organisation to deal with market and environmental forces better than its competitors.

Service Quality

An assessment of how well a service meets or exceeds customer expectations.

Customer Service

The assistance and support provided by a company to those who buy or use its products or services.