Which of the Following Is a Strength of a Functional

question 15

Multiple Choice

Which of the following is a strength of a functional structure?

• A)It has fast response time to environmental changes.
• B)It leads to excellent horizontal coordination among departments.
• C)It results in more innovation.
• D)It allows economies of scale within functional departments.

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Definitions:

Economies of Scale

Cost advantages obtained by an increase in production, leading to a reduction in average costs per unit.

Long-run Average Total Cost

The average total cost of production when all inputs, including capital, are variable, typically illustrating economies of scale.

Marginal Cost

The increased cost resulting from the creation of one more unit of a good or service.

Average Total Cost

The total cost of production divided by the quantity produced, indicative of the cost per unit of output.