All of the Following Are Possible Reasons for Diseconomies of Scale

question 61

Multiple Choice

All of the following are possible reasons for diseconomies of scale EXCEPT

• A) bureaucratic inefficiency.
• B) a top-heavy management structure.
• C) indivisible inputs.
• D) All of the above are possible reasons for diseconomies of scale.

---

Definitions:

3-day SMA

A short-term moving average that calculates the average of a security's prices over the last three days.

Stock Prices

The cost of purchasing a share of equity in a company, which fluctuates based on market conditions.

Shares Outstanding

The total number of a company's shares that are currently owned by all its shareholders, including share blocks held by institutional investors and restricted shares owned by the company’s officers and insiders.

2-for-1 Split

A stock split in which a company divides its existing stock into two shares, effectively halving the price of each share while doubling the number of shares owned by shareholders.