A Firm's Efficient Scale of Production Is the Output at Which

question 125

Multiple Choice

A firm's efficient scale of production is the output at which its

• A) marginal cost is at a minimum.
• B) average total cost is at a minimum.
• C) profit is maximized.
• D) marginal revenue is at a maximum.
• E) marginal revenue equals marginal cost.

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Definitions:

Multifunctional Team

A team composed of members from different functional areas of an organization working towards a common goal.

BSC Performance Management System

A strategic planning and management system used to align business activities to the vision and strategy of the organization, improve internal and external communications, and monitor organizational performance against strategic goals.

Strategic Objectives

Long-term goals that help to convert a mission statement from a broad vision into more specific plans and projects.

Internal Processes Perspective

An aspect of the Balanced Scorecard that focuses on the internal operational goals and performance necessary to achieve financial objectives.