Which of the Following Statements Is False

question 256

Multiple Choice

Which of the following statements is false?

• A)When marginal cost equals average total cost, average total cost is at its highest value.
• B)The marginal cost curve intersects the average variable cost curve and the average total cost curve at their minimum points.
• C)The difference between average total cost and average fixed cost is average variable cost.
• D)Firms often refer to the process of lowering average fixed cost as "spreading the overhead."

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Definitions:

Organic Model

A less formalized structure based on decentralization and cross-functional teams.

Organizational Structure

The system that outlines how certain activities are directed in order to achieve the goals of an organization, including roles and responsibilities.

Cross-Functional Teams

These are groups composed of members from different departments or areas of expertise, working together towards a common goal.

Chain Of Command

The flow of authority and power from the highest to the lowest levels of the organization.