One Problem with Becoming Too Large Is That Large Firms

question 66

Multiple Choice

One problem with becoming too large is that large firms:

• A) tend to have less market power.
• B) have less potential for economies of scale.
• C) become attractive takeover targets.
• D) usually increase bureaucratic controls.

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Definitions:

Anvil

A heavy iron block used in metalworking as a surface upon which metals can be hammered and shaped.

Auditory Cortex

The part of the brain that processes auditory information, located in the temporal lobe.

Temporal Lobe

A region of the cerebral cortex responsible for processing auditory information and is involved in memory and emotion.

Place Theory

A theory in hearing that suggests different areas of the cochlea are activated by different frequencies of sound, aiding in pitch perception.