The Middle Managers of an Organization

question 21

Multiple Choice

The middle managers of an organization:

• A) are in charge of the organization as a whole.
• B) are appointed by the stockholders of an organization.
• C) oversee the work of large departments.
• D) hold titles such as department head, team leader, or supervisor.
• E) constitute an executive team that reports to the board.

---

Definitions:

Increasing Returns to Scale

Occurs when an increase in all inputs by a certain percentage causes a more than proportional increase in output.

Decreasing Returns to Scale

Decreasing returns to scale occur when an increase in all inputs leads to a less than proportional increase in output, showing that the firm becomes less efficient as it scales up production.

Increasing Opportunity Costs

A situation where the cost of forgoing the next best alternative increases as more resources are devoted to an activity.

Scale Reduction

The process of decreasing the size or output level of operations in a business or economic system.