Which of the Following Is a Reason Why a Firm

question 61

Multiple Choice

Which of the following is a reason why a firm would experience diseconomies of scale?

• A)To finance an increase in the size of its plant, a firm must borrow more money or sell more shares of stock.
• B)As the size of the firm increases, it becomes more difficult to find markets where it doesn't already have operations.
• C)As the size of the firm increases, it becomes more difficult to coordinate the operations of its manufacturing plants.
• D)As the size of the firm increases, it must operate in other countries where differences in language, customs, and laws increase its average costs.

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Definitions:

Mirror Neurons

Neurons that fire both when an individual acts and when the individual observes the same action performed by another, thought to play a role in empathy and learning through imitation.

Facial Actions

The movements of facial muscles that express emotions and communicate nonverbally.

Social Connections

The relationships and networks among individuals that provide support, friendship, and interaction in their personal and professional lives.

Mirror Neuron Systems

Mirror neuron systems are networks of neurons in the brain that are activated both when an individual performs an action and when they observe the same action performed by another, playing a role in learning, empathy, and understanding intentions.