Replacing Leaders and Decreasing Communication Are Common Responses to Overstaffing

question 40

True/False

Replacing leaders and decreasing communication are common responses to overstaffing.

---

Definitions:

Economies of Scope

Cost advantages that enterprises obtain due to a broad scope of operations or the variety of products and services offered.

Cost Function

A mathematical relation that describes how the total cost of producing a good or service varies with the level of output.

Diseconomies of Scope

The phenomenon where a company’s costs increase as it produces more varied types of products or services, due to inefficiencies.

Returns to Scale

The rate at which output increases as inputs are increased proportionately.