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.

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Definitions:

Categories

Distinct groups or classes into which data or objects are organized based on shared characteristics or attributes.

Chi-square

A statistical method that assesses whether a meaningful association is present between two variables of categorical nature.

Degrees of Freedom

Represents the number of independent values or quantities that can vary in the analysis without breaking any constraints.

Categories

Specific groups or classes within a dataset that are used to classify observations.