Firms May Experience Diseconomies of Scale When

question 155

Multiple Choice

Firms may experience diseconomies of scale when

• A)they are too small to take advantage of specialization.
• B)large management structures are bureaucratic and inefficient.
• C)there are too few employees, and managers do not have enough to do.
• D)average fixed costs begin to rise again.

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Definitions:

Unemployment

A situation where individuals who are capable of working and are actively seeking employment are unable to find a job.

Incomes

refers to the earnings that individuals or businesses receive, typically through work, investments, or other sources.

Changing Technology

The ongoing evolution and innovation in technology that impacts how goods and services are produced, consumed, and delivered.

Employment

The condition of having a job or being employed in a paid position.