Which of the Following May Explain Why Decreasing Returns to Scale

question 26

Multiple Choice

Which of the following may explain why decreasing returns to scale occur?

• A)Diminishing marginal rate of technical substitution
• B)The law of diminishing marginal utility
• C)Managerial inefficiencies
• D)Division and specialization of labor

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Definitions:

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Mutually Perceived Membership

Mutually perceived membership describes a scenario in negotiations where all parties recognize and accept each other as legitimate participants.

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Common Pool Of Information

Shared knowledge and data that are accessible to all participants involved in a negotiation or decision-making process.