What Are Diseconomies of Scale

question 126

Multiple Choice

What are diseconomies of scale?

• A)The situation where a firm's output decreases in proportion to the decrease in its inputs.
• B)The situation where a firm is able to obtain lower prices for the inputs it buys because of bulk buying.
• C)Bureaucratic inefficiencies in management that result in decreasing returns to scale.
• D)The smallest level of output at which a firm is able to minimize long-run average cost.

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Definitions:

Investor's Return

The profit or loss made on an investment, expressed as a percentage of the initial investment amount.

Current Dividends

Refers to the dividends that are declared and paid by a company for the current fiscal period.

Perceived Risk

The level of risk that consumers or investors believe is associated with a product, investment, or decision, which may not always match the actual risk.

Annual Dividend

The total dividend payment a shareholder receives per share of stock held over a year.