What Is the Minimum Efficient Scale

question 185

Multiple Choice

What is the minimum efficient scale?

• A)The level of output where diminishing returns have not set in yet.
• B)The plant size that yields the most profit.
• C)The level of operation where long-run average costs are lowest.
• D)The smallest output level where the firm finally reaches productive efficiency.

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Definitions:

Performance Management

The process by which an organization involves its employees in improving effectiveness toward achieving company goals, including setting expectations, monitoring progress, and evaluating outcomes.

Employees' Knowledge

Refers to the information and skills that employees possess, which are critical assets to the organization's success and competitiveness.

Performance Measures

Indicators or metrics used to evaluate and assess the efficiency, effectiveness, and performance of individuals, groups, or organizations.

Performance Management

The process of ensuring that an organization's resources are being used most efficiently to achieve its goals, including employee performance.