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Scenario A. Your company has a number of decision makers with very different ideas about the diffusion of technological innovations. This can complicate the decision-making process for your organization. Saul is called "Slow Poke Saul" by his colleagues because he is always the last one to go along with any new technology. Saul's feeling is that most innovations are part of some economic "plot" to take your money for something you don't really need. Jerome is the opposite of Saul! Jerome is the first to try everything; he is an adventurer by nature and believes that even if a new innovation fails, it's worth the risk if you might be the first with a new technology. Lindee and Manuel are well-respected in the organization and their opinion is sought out by their colleagues; they may not be the first to try something, but they are never far behind.
-In this scenario,Lindee and Manuel are examples of
Diseconomies of Scale
Phenomena that occur when a company or business grows so large that the costs per unit increase, leading to inefficiency and increased per-unit costs.
Large Business
A corporation or conglomerate with extensive operations, high revenue, and a significant number of employees.
Managing and Coordinating
The processes of directing, overseeing, and orchestrating activities within an organization to achieve predetermined objectives.
Minimum Efficient Scale
Minimum efficient scale is the smallest scale of production at which a firm can achieve long-term average costs that are as low as possible.
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