The Capabilities of "Craft Enterprises" Are Based Upon the Tacit

question 39

Multiple Choice

The capabilities of "craft enterprises" are based upon the tacit knowledge of skilled employees.The capabilities of "industrial enterprises" are based upon systematized knowledge located within processes.The key advantage of industrial enterprises over craft enterprises is that:

• A)They can replicate their capabilities at low cost in multiple locations
• B)They are less vulnerable to shortages of skilled workers
• C)They can standardize their offerings
• D)They can automate their production.

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Definitions:

AVC

Average Variable Cost, which is the total variable costs of production divided by the quantity of output produced.

Average Variable Cost

The variable costs associated with production when divided by the total units manufactured, indicating the cost per unit that varies.

Average Fixed Cost

The fixed costs of production (costs that do not change with the level of output) divided by the quantity of output produced, decreasing as production increases.

Short Run

A period during which at least one factor of production is fixed, affecting a firm's ability to adjust to market changes.