According to Your Text,which of the Following Is Considered an Individual

question 168

Multiple Choice

According to your text,which of the following is considered an individual incentive?

• A)Gainsharing plans
• B)Piece-rate plans
• C)Share options
• D)Share ownership
• E)None of the answers apply.

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Definitions:

Economies of Scale

Cost advantages reaped by companies when production becomes efficient, leading to a decrease in the per-unit cost as output increases.

Diseconomies of Scale

The situation in which the cost of producing each individual unit rises when a company's production volume grows, often resulting from inefficiencies and a rise in complexity.

Long-run Average Total Cost

The cost per unit of output in which all inputs, including capital, are variable, showing economies and diseconomies of scale over time.

Increasing Returns to Scale

A situation in which a proportional increase in all inputs results in a more than proportional increase in output, demonstrating economies of scale.