If a Firm Decreases Its Plant Size and Finds That

question 136

Multiple Choice

If a firm decreases its plant size and finds that its long-run average costs have decreased, then

• A)its labour is more productive in a smaller plant.
• B)its diseconomies of scale are less.
• C)the firm should reduce its plant size even more.
• D)the firm is now profitable.

Explain the marketing concept and its significance for firms in achieving success.

Describe how consumer behavior and needs influence marketing strategies.

Differentiate between the production, product, sales, and market orientations.

Identify the effects of market orientation on a firm’s performance, including its impact on profitability and customer satisfaction.

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Definitions:

Complexity Of Reality

The notion that real-world situations are intricate due to interconnections and interdependencies among various elements and variables.

Simplifications

The process of making something easier to understand or do by reducing its complexity.

Trade-Offs

Decisions made that involve a sacrifice of one thing to obtain another, often used in discussions of economic and personal choices.

Opportunity Cost

This represents the value of the best alternative foregone when a decision to pursue a certain action is made.