Asked by
Cristal Hernandez
on Dec 11, 2024Verified
Larger firms will often have lower minimum per-unit costs than smaller firms because
A) employee shirking is less of a problem.
B) large-scale output allows greater specialization for both labor and machines in the production process.
C) mass production techniques, with high setup and development costs, are appropriate only when a small output is planned.
D) all of the above are correct.
Min Per-unit Costs
The lowest possible cost of producing one unit of good or service, achieved through efficient use of resources and optimal production scale.
Employee Shirking
Refers to employees putting in less effort than agreed upon or expected, often when they believe their lack of effort will not be noticed or punished.
Specialization
The process of focusing on and becoming expert in a particular area of production or knowledge to increase efficiency.
- Expound on how scale economies and diseconomies affect the cost configurations of businesses.
- Expound on the scenarios in which enterprises attain economies of scale.
Verified Answer
WL
Learning Objectives
- Expound on how scale economies and diseconomies affect the cost configurations of businesses.
- Expound on the scenarios in which enterprises attain economies of scale.