Which of the Following Provides the Best Explanation for Diseconomies

question 33

Multiple Choice

Which of the following provides the best explanation for diseconomies of scale?

• A) the firm is too small to take advantage of specialization.
• B) large management structures may be bureaucratic and inefficient.
• C) if there are too many employees, the work place becomes crowded and people become less productive.
• D) average fixed costs are rising.

---

Definitions:

Full-time Employment

A form of employment where an individual works a minimum number of hours defined by their employer, typically with benefits such as health insurance.

Organizational Needs

The requirements essential for an organization to maintain and enhance its operations, achieving its short and long-term goals.

Long-term HR Priorities

Refers to the strategic objectives and goals a human resources department sets for achieving growth and success over an extended period.

HR Surpluses

A situation where the number of employees exceeds the number of positions available within an organization, leading to potential layoffs or reassignments.