External Diseconomies of Scale Occur When

question 125

Multiple Choice

External diseconomies of scale occur when

• A)industry expansion leads to a decrease in marginal product.
• B)long-run marginal cost increases with output.
• C)problems with managing a large firm cause long-run average total costs to rise with output.
• D)industry expansion causes demand to increase.
• E)industry expansion causes input prices to rise.

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Definitions:

New Public Management

A management philosophy used by governments since the 1980s to modernize and render public service more efficient by adopting private sector management practices.

Centralization

The concentration of control, authority, or decision-making power in a central group or location, often at the higher levels of an organization or government.

Privatization

The transfer of ownership of property or businesses from the government to private individuals or organizations.

Deregulating Labor Law

The process of reducing government rules controlling how businesses can manage workers, aimed at making labor markets more flexible.