Which of the Following Provides the Best Explanation for Diseconomies

question 33

Multiple Choice

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

• A) the firm is too small to take advantage of specialization.
• B) large management structures may be bureaucratic and inefficient.
• C) if there are too many employees, the work place becomes crowded and people become less productive.
• D) average fixed costs are rising.

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Definitions:

Compounded Semiannually

This process involves the interest being calculated and added to the principal sum twice a year, leading to interest on interest.

Compound Interest

Interest determined on the original amount of a deposit or loan, incorporating all the earned interest from past periods as well.

Compounded Semiannually

A method of calculating interest where the interest is added to the principal twice a year, leading to interest earned on interest.

Compounded Annually

This refers to the process of calculating interest on an investment or loan on a yearly basis, where interest from one year is added to the principal for calculation of interest in the next year.