Which of the Following Is a Source of Diseconomies of Scale

question 5

Multiple Choice

Which of the following is a source of diseconomies of scale at a large firm?

• A)Labor costs
• B)Spreading specialized resources too thin
• C)Conflicts of interest
• D)Incentive processes
• E)All of the above

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Definitions:

Consumer Surplus

The gap between the intended investment consumers are willing to make in a product or service and their actual financial outlay.

Willingness to Pay

The maximum amount an individual is ready to sacrifice to acquire a good or benefit from a service.

Market Demand Curve

A graphical representation showing the relationship between the price of a good and the total amount of the good that all consumers are willing to purchase at each price level.

Willingness to Pay

The utmost price a consumer is ready to pay for a good or service, indicating its perceived value to them.