Under Which Conditions Might Diseconomies of Scale Result

question 161

Multiple Choice

Under which conditions might diseconomies of scale result?

• A) hampered coordination brought about by bureaucracy
• B) decreasing costs of inputs
• C) increasing output prices
• D) usage of a large amount of indivisible inputs by the firm

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Definitions:

Sustainable Resources

Natural resources that are used in a manner that satisfies current needs without compromising the ability of future generations to meet their needs.

Hunger-Related Diseases

Illnesses that result directly or indirectly from insufficient food intake or poor nutritional quality.

Malnutrition

A condition that arises from eating a diet in which nutrients are either not enough or are too much, causing health problems related to undernourishment or overnutrition.

One-Person Trap

When the consequences of a destructive behavior affect only the individual (e.g., overeating).