One Reason That Firms Will Experience Increasing Returns to Scale

question 10

Multiple Choice

One reason that firms will experience increasing returns to scale is

• A) The law of diminishing marginal returns
• B) The specialization of inputs as scale increases
• C) There is some fixed input that isn't being taken into consideration
• D) Large firms may be difficult to manage effectively

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Definitions:

Working Styles

Refers to the various patterns and approaches that individuals adopt in their professional environments to complete tasks and interact with others.

Storming Stage

A phase in team development characterized by conflict and competition as individuals start to express different opinions and values.

Virtual Teams

Teams that operate and collaborate primarily through electronic communications technology, such as email, video conferencing, and messaging apps.

Geographically Dispersed

Refers to teams or organizations that are spread out over different geographical locations, often requiring remote communication and management.