Which of the Following Would Likely Result in Diseconomies of Scale

question 128

Multiple Choice

Which of the following would likely result in diseconomies of scale?

• A)The development of auxiliary services in the neighborhood
• B)Adoption of a new (more efficient) production process
• C)Specialization
• D)Management problems
• E)Lowering the per-unit cost of resources by buying them in larger quantities

Understand the components and determinants of aggregate demand.

Comprehend the impact of price levels on interest rates and exchange rates.

Recognize the short-run and long-run effects of monetary policy on the economy.

Differentiate between real and nominal variables and their significance.

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Definitions:

Inputs

The resources used in the production process, including labor, capital, materials, and energy.

Constant Returns To Scale

A situation in which increasing all inputs by a certain factor leads to an increase in output by the same factor, indicating proportionate scaling in production.

Production

This refers to the process of creating goods and services through the combination of labor, materials, and technology.

Cost

The monetary value required to produce or acquire goods or services.