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.

---

Definitions:

Linear Perspective

A depth cue that parallel lines appear to converge in the distance and objects appear smaller as their distance from the observer increases, contributing to the perception of depth.

Apparent Convergence

The perception of two parallel lines appearing to come together at a distance.

Texture Gradients

A depth cue in which the density and detail of texture change with distance, helping the observer to perceive spatial relationships.

Depth Cue

Are visual or auditory indications that provide information on the relative distance of objects from an observer, aiding in perception of depth.