Suppose That Gigantic Company Is Increasing in Size

question 103

Multiple Choice

Suppose that Gigantic Company is increasing in size. As Gigantic Company grows, coordination of work teams is becoming more difficult because of increased bureaucracy. It is likely that continued growth will result in

• A) economies of scale.
• B) Gigantic Company achieving the minimum efficient scale of production.
• C) diseconomies of scale.
• D) increasing marginal returns.

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Definitions:

Grams

A metric unit of mass equal to one thousandth of a kilogram.

Wheelbase Length

The distance between the center of the front and rear wheels of a vehicle, affecting its stability and handling.

Centimeters

A metric unit of length equal to one hundredth of a meter.

Inches

A unit of measurement in the Imperial system, equal to 1/12th of a foot.