To reduce average total cost if an organization is operating under economies of scale, managers should
A) Attempt to increase sales and output
B) Attempt to decrease sales and output
C) Attempt to increase sales and reduce output
D) Attempt to decrease sales and increase output
E) Do nothing
Correct Answer:
Verified
Q16: Average fixed cost
A) Increases when output increases
B)
Q17: Total variable cost
A) Increases when output increases
B)
Q18: Diminishing marginal returns occur when
A) The percentage
Q19: An organization is operating under constant returns
Q20: An organization is operating under economies of
Q22: Which of the following variables does a
Q23: In what type of situation does a
Q24: Flexible or activity-based budgets are most appropriate
Q25: The choice to rely on a functional
Q26: Silo-thinking is employees refusing to recognize events
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