Suppose That Gigantic Company Is Increasing in Size

question 103

Multiple Choice

Suppose that Gigantic Company is increasing in size. As Gigantic Company grows, coordination of work teams is becoming more difficult because of increased bureaucracy. It is likely that continued growth will result in

• A) economies of scale.
• B) Gigantic Company achieving the minimum efficient scale of production.
• C) diseconomies of scale.
• D) increasing marginal returns.

---

Definitions:

Determinants of Revenue

The factors that influence the amount of income generated from sales of goods or services, such as market demand, pricing strategies, and competition.

Service Firm

A company that provides services rather than tangible goods to consumers or other businesses.

Quality of Raw Materials

The measure of suitability, consistency, and integrity of materials sourced for manufacturing, impacting the final product's quality.

GIS

Geographic Information System, a framework for gathering, managing, and analyzing spatial and geographic data.