If an Organization Felt the Key to Efficiency Was to Reduce

question 17

Multiple Choice

If an organization felt the key to efficiency was to reduce the number of departments and increase spans of control, the organization would be targeting:

• A) organizational structure.
• B) people.
• C) technology.
• D) products or services.

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Definitions:

Profit-Maximizing Level

The output level at which a firm achieves the highest profit, where marginal revenue equals marginal cost.

Average Total Costs (ATC)

A rephrasing of Average Total Cost, it calculates the per-unit production cost by dividing the total cost by the total quantity of goods produced.

Manufacturing Firm

A business that uses components, parts, or raw materials to make a finished good.

Marginal Cost

The cost of producing one additional unit of a product or service, used in economics to determine the optimum production level.