Which of the Following Is an Example of Diseconomies of Scale

question 332

Multiple Choice

Which of the following is an example of diseconomies of scale?

• A) As the computer industry has expanded, demand for professionally trained computer programmers has also increased, which has caused the salaries of computer programmers to increase.
• B) As a firm hires additional workers, each worker adds less to total output than the previous worker.
• C) A firm increases in size and is therefore able to lower its health insurance costs because as the size of the group insured increases, the premium per person decreases substantially.
• D) As the demand for calculators decreased, the price of calculators actually rose.

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Definitions:

Covert Messages

Hidden or subtle messages that are not overtly expressed, often requiring interpretation to be understood.

Alcoholic Beverages

Drinks containing ethanol, commonly known as alcohol, produced through fermenting grains, fruits, or other sources of sugar.

Tobacco

A plant whose leaves are processed and used in cigarettes, cigars, and other substances for smoking.

Social Conditions

The societal factors impacting individuals' lifestyles, behavior, and welfare, encompassing economic, health, and educational circumstances.