The Primary Cause of Diseconomies of Scale Is Scarcity of Machinery

question 102

True/False

The primary cause of diseconomies of scale is scarcity of machinery and capital.

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Definitions:

Halo Errors

Bias in evaluating someone based on a single trait, characteristic, or first impression that influences judgment of all other qualities.

Severity Errors

Biases in evaluation, especially in performance appraisals, where the evaluator tends to rate everyone lower (or harsher) than deserved.

Leniency Errors

A type of bias in performance appraisals where the evaluator tends to rate employees more favorably than their performance deserves.

Recency Errors

A cognitive bias that leads individuals to give greater importance to the most recent information or experiences.