When a Firm Grows Larger,many Additional Layers of Managers Are

question 16

Multiple Choice

When a firm grows larger,many additional layers of managers are sometimes added that do not actually produce any output.At the same time,the firm gains additional bargaining power over the prices it pays to its suppliers.If both of these factors have an equal effect,we would expect this firm to experience

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

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Definitions:

Phylogenetic Species Concept

A concept in taxonomy that defines species based on their evolutionary history, identifying groups by unique genetic markers or traits.

Monophyletic Group

A group of organisms that consists of a common ancestor and all its descendants, also known as a clade.

Reproductive Isolation

A set of mechanisms that prevent different species from mating or ensure that if they do mate, their offspring will be sterile or not survive.

Ecological Adaptation

The process by which organisms adjust to new environments or to changes in their current environment, leading to evolutionary changes that enhance survival and reproduction.