When Firms Grow Larger,they Sometimes Add Many Additional Layers of Managers

question 74

Multiple Choice

When firms grow larger,they sometimes add many additional layers of managers between the top executives and the entry-level employees.Because these managers do not actually produce any output themselves,we expect more layers of management to lead to

• A) diminishing marginal returns.
• B) diseconomies of scale.
• C) economies of scale.
• D) constant returns to scale.
• E) increasing marginal returns.

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Definitions:

Caffeinated Beverages

Drinks that contain caffeine, a stimulant that can affect the central nervous system.

Wilcoxon Signed Rank Test

A non-parametric statistical test used to compare two related samples, testing the null hypothesis that their population mean ranks differ.

Null Hypothesis

A statement used in statistics that proposes there is no significant difference or effect, serving as the assumption to be tested.

Mean

The arithmetic average of a set of numbers, calculated by adding up all the values and then dividing by the number of values.