The Minimum Efficient Scale Is

question 14

Multiple Choice

The minimum efficient scale is

• A)the level of output where diminishing returns have not set in yet.
• B)the plant size that yields the most profit.
• C)the level of operation where long-run average costs are lowest.
• D)the smallest output level where the firm finally reaches productive efficiency.

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Definitions:

Vroom's model

A theoretical model that suggests decision-making and leadership styles should be adapted based on the situation and characteristics of the followers.

Decision Making

The method of selection by recognizing a decision, assembling data, and examining various alternatives.

Goal Clarity

The extent to which the objectives or desired outcomes of a task or project are clearly defined and understood.

Goal-path Clarity

signifies the clear understanding of the objectives to be achieved and the specific methods or steps required to reach those goals.