Which of the Following May Explain Why Decreasing Returns to Scale

question 26

Multiple Choice

Which of the following may explain why decreasing returns to scale occur?

• A)Diminishing marginal rate of technical substitution
• B)The law of diminishing marginal utility
• C)Managerial inefficiencies
• D)Division and specialization of labor

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Termination Notice

A formal written statement indicating the end of an agreement or employment, typically within a specified period.

Franchisee

An individual or company that has acquired the rights to use a franchisor's brand and business model in a specific territory.

Wind Up

The process of concluding or finalizing the affairs of a business or an entity, leading towards its dissolution.

Sole Proprietorship

is a business structure where a single individual owns and operates the business, assuming sole responsibility for its debts and obligations.