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:

Safety Glasses

Protective eyewear designed to safeguard the wearer's eyes from flying debris, particles, chemical splashes, or potentially harmful light rays.

Bar Code Tracking

A system for monitoring and managing inventory, shipments, or equipment by scanning bar codes to record and retrieve information quickly.

Inventory

Inventory refers to the goods and materials that a business holds for the ultimate goal of resale, production, or utilization in service delivery.

Corrosive

A substance capable of chemically attacking another.