One Reason That Diseconomies of Scale Arise Is Because

question 115

Multiple Choice

One reason that diseconomies of scale arise is because:

• A) the short-run average total cost curve rises when marginal product is increasing.
• B) of the difficulties involved in managing and coordinating a large business enterprise.
• C) firms must be large both absolutely and relative to the market to employ the most efficient productive techniques available.
• D) beyond some point marginal product declines as additional units of a variable resource (labor)are added to a fixed resource (capital).

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Definitions:

Diversity

The inclusion or representation of different types of people (in terms of race, age, sex, ethnicity, sexual orientation, etc.) in a group or organization.

Selection Decision

The process by which an employer evaluates and decides upon which candidates will be offered a job from a pool of applicants.

Utility Analysis

A quantitative method used to assess the economic value or impact of human resource interventions and decisions.

Internal Recruiting

The practice of filling job vacancies within a company using existing employees rather than hiring externally.