When a Firm Becomes So Large It Is Difficult to Coordinate

question 152

Multiple Choice

When a firm becomes so large it is difficult to coordinate and control,it is most likely that

• A) economies of scale have begun.
• B) diseconomies of scale have begun.
• C) average total cost begins to fall.
• D) long-run average costs become negative.
• E) there is increasing marginal returns to increasing the firm's plant size.

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