Asked by
Emily Ramirez
on Nov 25, 2024
Verified
Diseconomies of scale arise primarily because
A) the short-run average total cost curve rises when marginal product is increasing.
B) of the difficulties involved in managing and coordinating a large business enterprise.
C) firms must be large both absolutely and relative to the market to employ the most efficient productive techniques available.
D) beyond some point, marginal product declines as additional units of a variable resource (labor) are added to a fixed resource (capital) .
Diseconomies of Scale
Phenomena that occur when a company or business grows so large that the costs per unit increase, leading to inefficiency and increased per-unit costs.
Large Business
A corporation or conglomerate with extensive operations, high revenue, and a significant number of employees.
Managing and Coordinating
The processes of directing, overseeing, and orchestrating activities within an organization to achieve predetermined objectives.
- Analyze the operational and managerial challenges leading to diseconomies of scale.
Verified Answer
SP
Learning Objectives
- Analyze the operational and managerial challenges leading to diseconomies of scale.