The Figure Given Below Shows Three Short Run Average Total

question 104

Multiple Choice

The figure given below shows three Short Run Average Total Cost (SRATC) curves and the Long Run Average Total Cost (LRATC) curve of a firm.Figure 8.3

-If a company is producing at a level of output at which the long-run average-total-cost curve reaches a minimum, then the company:

• A)is experiencing economies of scale.
• B)is operating at its minimum efficient scale.
• C)is experiencing increasing returns to scale.
• D)will shut down.
• E)is experiencing diseconomies of scale.

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Definitions:

End-User Development

Approach in which the organization’s end users develop their own applications with little or no formal assistance from the IT department.

Application Portfolio

Refers to the managed set of software applications and digital solutions used by an organization to support its business processes and operations.

Constraints

Limitations or restrictions that are placed on a process or system.

IS Environment

Information Systems Environment, referring to the overall conditions and elements that affect how information systems are designed, implemented, and used within an organization.