Which of the Following Is a Reason Why a Firm

question 61

Multiple Choice

Which of the following is a reason why a firm would experience diseconomies of scale?

• A)To finance an increase in the size of its plant, a firm must borrow more money or sell more shares of stock.
• B)As the size of the firm increases, it becomes more difficult to find markets where it doesn't already have operations.
• C)As the size of the firm increases, it becomes more difficult to coordinate the operations of its manufacturing plants.
• D)As the size of the firm increases, it must operate in other countries where differences in language, customs, and laws increase its average costs.

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Definitions:

Information Age

The current era characterized by the rapid creation, sharing, and manipulation of information, largely facilitated by digital technology.

Development of Computers

The historical and ongoing advancement of computer technology, from early mechanical calculators to modern digital computers.

Productivity Growth

Productivity growth refers to an increase in the efficiency of production or output per unit of input, typically measured over time and considered crucial for economic development.

Technological Change

The process of invention, innovation, and diffusion of technology or processes which significantly alters the way goods or services are produced.