An Analysis of the Industry's Technological Improvements Can Help Managers

question 39

Multiple Choice

An analysis of the industry's technological improvements can help managers better identify which of these trends are occurring within a particular industry?

• A)Major efficiency gains.
• B)Reductions in overhead
• C)Lower production costs
• D)All of the above

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Definitions:

Peak Efficiency

The state in which an entity or system is operating at its maximum potential and efficiency, without waste of resources.

Average Total Cost

This refers to the total cost per unit of output, calculated by dividing the total cost of production by the number of units produced.

Marginal Cost

The rise in expense incurred from manufacturing an extra unit of a product or service.

Shutdown Point

The level of operations at which a company does not benefit from continuing operations or producing any output due to high variable costs.