When a Firm Becomes So Large It Is Difficult to Coordinate

question 48

Multiple Choice

When a firm becomes so large it is difficult to coordinate and control, it is most likely that

• A) there are increasing marginal returns to increasing the firm's plant size.
• B) average total cost begins to fall.
• C) long-run average costs become negative.
• D) economies of scale have begun.
• E) diseconomies of scale have begun.

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