Which of the Following Provides the Best Explanation for Diseconomies

question 81

Multiple Choice

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

• A) The presence of fixed inputs
• B) Reduced monitoring costs
• C) Loss of team spirit
• D) Indivisible setup costs

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Definitions:

Competitive Firm

A business operating in a market where it has little to no control over the price of its product, typically because the market has many sellers and buyers.

Competitive Market

A market structure where a large number of suppliers offer several substitutes, ensuring no single supplier controls the market prices.

Characteristics

Features or qualities that distinguish one thing from another, used to describe unique aspects of individuals, objects, or concepts.

Short-run Supply Curve

A graphical representation showing the quantity of goods and services that producers are willing to sell at each possible price level, over a short time period where some production factors are fixed.