Residual efficiency:
A)Is defined as the remaining unit cost differences between firms once all other drivers are taken into account
B)Is often called "organizational fat"
C)Depends on a firm's ability to eliminate organizational slack
D)All of the above

Question

Quizplus · Accepted Answer

All three options describe residual efficiency. It is the remaining unit cost differences between firms after taking into account all other drivers, often referred to as "organizational fat," and heavily dependent on a firm's ability to eliminate organizational slack.

Residual Efficiency