What Is True About a Minimum Efficient Scale

question 74

Multiple Choice

What is true about a minimum efficient scale?

• A)It shows the optimal quantity for a company to produce.
• B)It can be most efficiently maintained in large industries by increasing the level of production.
• C)It proves that the costs per unit decrease with increases in volume till they reach and then maintain the minimal level.
• D)It can be achieved by large industries during economic downturns because they can easily spread their fixed costs when demand declines.

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Definitions:

Skills

Abilities acquired through practice and learning that enable an individual to perform specific tasks effectively.

Skill-Based Pay

A compensation system where employees are paid based on the skills, knowledge, and abilities they bring to the job, regardless of their position or title.

Merit Pay

A system of compensation where employees are rewarded based on their performance, often evaluated through predetermined criteria.

Entitlement Pay

Financial compensation granted to employees based on their title, status, or seniority rather than their performance or productivity.