Which of the Following Provides the Best Explanation for Diseconomies

question 10

Multiple Choice

Which of the following provides the best explanation for diseconomies of scale?

• A) Increased specialization
• B) Diminishing marginal productivity
• C) Monitoring costs
• D) Indivisible setup costs

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Definitions:

Analogy Problem

A type of problem that tests reasoning and understanding through the identification of relationships between pairs of concepts.

Series-Completion

A cognitive task where individuals must identify the missing part in a sequential pattern.

Mental Set

A psychological tendency to approach situations in a certain way based on previous experiences and context, which can sometimes inhibit problem-solving.

Functional Fixedness

A mindset that limits an individual's use of an object to its conventional purpose alone, inhibiting their capacity for innovation and solving challenges.