Which of the Following Is the Most Likely Cause of Diseconomies

question 88

Multiple Choice

Which of the following is the most likely cause of diseconomies of scale?

• A)Increasing returns to scale.
• B)A small scale of operations and output.
• C)Low productivity.
• D)Complex interpersonal communication structures.

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Definitions:

Average Collection Period

A measure of how long it takes a firm to convert a credit sale (internal store credit, not credit card sales) into a usable form (cash).

Quick Ratio

A financial metric that measures a company's ability to cover its short-term liabilities with its most liquid assets, excluding inventories.

Goods Sold

Goods sold refers to the products that a company has provided to customers in exchange for payment; it is often used in the context of calculating revenues and inventory turnover.

Current Ratio

This is a liquidity ratio that measures a company's ability to pay short-term obligations or those due within one year.