X-Inefficiency Refers to a Situation in Which a Firm

question 188

Multiple Choice

X-inefficiency refers to a situation in which a firm

• A) is not as technologically progressive as it might be.
• B) encounters diseconomies of scale.
• C) fails to realize all existing economies of scale.
• D) fails to achieve the minimum average total costs attainable at each level of output.

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Definitions:

Employment at Will

A doctrine in labor law that allows employers to terminate employees for any reason, unless it is illegal or violates an employment contract.

Common Law Doctrine

A principle or precedent set by previous court decisions, forming part of the body of law in common law jurisdictions, as opposed to statutory law.

Contract or Statute

Legal documents that establish rights and obligations; a contract is an agreement between parties, while a statute is a law enacted by a legislative body.

Vicarious Liability

A legal principle that holds an entity or individual responsible for the actions of another party, typically in an employer-employee relationship.