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The span of control should be smaller and the number of levels of management should be larger when:
Fixed Costs
Costs that do not change with the level of production or sales volume, such as rent or salaries.
Widgets
A generic term often used to refer to a fictional or unspecified product or gadget.
Nonunion Firms
Companies or organizations where the workforce is not represented by a labor union, often resulting in different working conditions compared to unionized settings.
Foreign Producers
Companies or individuals located outside a given country that produce goods or services for that country's market.
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