When a Firm Becomes So Large It Is Difficult to Coordinate

question 250

Multiple Choice

When a firm becomes so large it is difficult to coordinate and control,it is most likely that

• A) economies of scale have begun.
• B) diseconomies of scale have begun.
• C) average total cost begins to fall.
• D) long-run average costs become negative.
• E) there are increasing marginal returns to increasing the firm's plant size.

Comprehend the principles of simplification and standardization in procurement.

Grasp the advantages of early supply involvement in procurement processes.

Identify criteria for determining whether a purchase is strategic.

Understand the various methods of purchase specification and their implications.

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Definitions:

Undue Hardship

A significant difficulty or expense imposed on an employer by accommodating an employee under laws like the ADA.

Restraints on Competition

Measures or agreements that limit competition between businesses, often scrutinized under antitrust laws.

Free Competition

The condition in a market where businesses and individuals can operate and compete with minimal governmental interference or regulation.

Public Interest

The welfare or well-being of the general public, often considered in the formulation of laws and governmental policies.