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:

Sternocleidomastoid

A significant muscle in the neck that is involved in the rotation and flexion of the head.

Tibialis Anterior

A muscle in the lower leg that is involved in dorsiflexion and inversion of the foot.

Biceps Femoris

A muscle of the posterior thigh involved in knee flexion and hip extension, part of the hamstrings group.

Extensor Digitorum Longus

The extensor digitorum longus is a muscle in the lower leg that helps extend the toes and dorsiflex the foot, facilitating walking and running.