Which of the Following Is Not a Reason Why Firms

question 67

Multiple Choice

Which of the following is not a reason why firms experience economies of scale?

• A)Technology can make it possible to increase production with a smaller increase in at least one input.
• B)Workers and managers can become more specialized, enabling them to be more productive.
• C)Larger firms may be able to purchase inputs at lower costs than smaller competitors.
• D)As output increases, the managers can begin to have difficulty coordinating the operations of their firms.

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Definitions:

Confirmation Bias

A cognitive bias that involves favoring information that confirms previously existing beliefs or biases.

Existing Belief

A pre-held notion or conviction that persists in an individual's thoughts before being exposed to new information or experiences.

Accurate Decisions

The process of making choices that closely match the correct or optimal outcomes based on available information.

Semantic Slanting

The use of language to influence an audience's perception by choosing words that carry strong connotations.