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:

International Audience

A diverse group of people from various countries and cultures, requiring consideration of multiple perspectives and potentially different communication practices.

First Names

The personal names given to individuals, typically used in informal contexts, distinguishing them from their family names.

Titles

Words or phrases used as the name of books, articles, documents, or as formal distinctions attached to individuals' names.

Polychronic Cultures

Cultures that perceive time as simultaneous and flexible, often multitasking and valuing interpersonal relationships over strict schedules.