When a Firm Does More of Something, It Gets Better

question 244

Multiple Choice

When a firm does more of something, it gets better at it. This learning-by-doing is

• A)a source of diseconomies of scale.
• B)a source of economies of scale.
• C)called the principle of natural progression.
• D)called "spreading the overhead."

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Definitions:

Product Inspection

The process of examining and testing items or goods to ensure they meet specified standards or requirements before being sold or shipped.

Adds Value

The process of enhancing a product or service before offering it to customers, increasing its desirability and worth.

Cross-training

A strategy where employees are trained in multiple skills or job functions to increase versatility and flexibility within the workforce.

Improve Flexibility

Refers to the ability of a system or operation to adapt to changes or variations in conditions, demand, or the environment.