When a Company Does Something Negative,such as Selling a Prescription

question 158

True/False

When a company does something negative,such as selling a prescription drug with unexpected side effects,the public relations department can do little to rectify the damage to the firm's image.

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Definitions:

Economies Of Scale

Companies achieve cost benefits when their production processes become more efficient, leading to a decrease in the per-unit cost as the scale of production grows.

Pin Factory

An example used by Adam Smith to illustrate how division of labor increases productivity.

ATC Curve

Average Total Cost Curve, a graph that shows the cost per unit of output produced, plotted against the quantity of output.

Economies Of Scale

Cost advantages reaped by companies when production becomes efficient, resulting in a decrease in the per-unit cost as the output increases.