Reference no: EM132174473
1. What is true about a minimum efficient scale?
It shows the optimal quantity for a company to produce.
It can be most efficiently maintained in large industries by increasing the level of production.
It proves that the costs per unit decrease with increases in volume till they reach and then maintain the minimal level.
It can be achieved by large industries during economic downturns because they can easily spread their fixed costs when demand declines.
2. Which of the following is true of competitive advantage?
It requires a company to consistently outperform its rivals in generating above-average profits.
It should be avoided by not-for-profit organizations.
It is usually achieved by firms that provide general as well as imitable products.
It can be measured by using only tangible outcomes.
3. Which of the following statements is true of cost advantage?
Large firms are guaranteed to secure a wide cost advantage.
Size and scale do not always guarantee a cost advantage.
Firms with high production volumes are sure to gain a cost advantage.
Firms which produce standardized products have a cost advantage.