When Firms Grow Larger,they Sometimes Add Many Additional Layers of Managers

question 74

Multiple Choice

When firms grow larger,they sometimes add many additional layers of managers between the top executives and the entry-level employees.Because these managers do not actually produce any output themselves,we expect more layers of management to lead to

• A) diminishing marginal returns.
• B) diseconomies of scale.
• C) economies of scale.
• D) constant returns to scale.
• E) increasing marginal returns.

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Definitions:

Worker Solidarity

The unity and support exchanged among workers from different sectors and backgrounds, often in the pursuit of common goals or in response to mutual challenges.

Economic Efficiency

A measure of how effectively economic resources are utilized to meet consumer needs and produce maximum output with minimum waste.

New Zealand's Labor Movement

A social and political movement in New Zealand advocating for workers' rights, better labor laws, and improvements in working conditions.

Independent Unions

Labor unions that are not affiliated with any national federation or labor organization, often focusing on specific workplace issues.