Which of the Following Is Not a Reason Why Firms

question 67

Multiple Choice

Which of the following is not a reason why firms experience economies of scale?

• A)Technology can make it possible to increase production with a smaller increase in at least one input.
• B)Workers and managers can become more specialized, enabling them to be more productive.
• C)Larger firms may be able to purchase inputs at lower costs than smaller competitors.
• D)As output increases, the managers can begin to have difficulty coordinating the operations of their firms.

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Definitions:

Internally Motivated

Being driven by personal values, interests, or intrinsic desires rather than external rewards.

Values

Core beliefs or principles that guide an individual's actions and judgments.

Multiple Linkage Model

A theoretical framework suggesting that the effectiveness of a leader is linked through multiple variables, including the situation, leader behavior, group behavior, and outcomes.

Mediating Variables

Variables that explain the relationship between two other variables, often clarifying how or why such a connection exists.