The Graph Below Includes Two Plant Sizes as Illustrated by AC₁

question 90

Multiple Choice

The graph below includes two plant sizes as illustrated by AC₁ and AC₂.

-Refer to the graph above to answer this question.All of the following statements except one are correct if a small market limits a firm's output to Q₁.Which is the exception?

• A)The firm is not achieving capacity output in plant 1.
• B)The firm is not achieving minimum efficient scale.
• C)The firm is experiencing excess capacity.
• D)The firm would benefit from a larger market.
• E)Building a larger plant would lower the firm's average cost of producing Q₁.

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Definitions:

Benchmarking

The process of comparing one's business processes and performance metrics to industry bests or best practices from other companies.

Forming Stage

The initial phase of team development where members meet and start to work together for the first time.

Organizational Environments

encompasses the various external and internal factors that influence how an organization operates, including economic, technological, social, legal, and political elements.

Software Requirements

A detailed description of the functionalities, constraints, and capabilities that a software must possess to satisfy the needs of its stakeholders.