One Reason for Diseconomies of Scale Is That, at Very

question 200

Multiple Choice

One reason for diseconomies of scale is that, at very large scales, management systems can become

• A) more efficient because they can effectively manage more workers.
• B) increasingly complex and inefficient.
• C) more numerous than the workers they manage.
• D) none of the above.

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Definitions:

Contracts

Legally binding agreements between two or more parties that create mutual obligations.

Sherman Act

The Sherman Act is a landmark federal statute in the field of U.S. antitrust law passed by Congress in 1890, which prohibits monopolistic business practices and promotes competition.

Illegal Per Se

Refers to actions or conditions that are inherently illegal, without the need for additional proof of their harmfulness or illegality.

Market Allocations

Agreements between competitors to divide markets among themselves, often considered illegal under antitrust laws.