Describe how an accounting firm could experience diseconomies of scale
Problems with coordination can cause diseconomies of scale. Suppose the firm hires so many new workers that management is unable to monitor the number of tax returns they can produce (output). Suppose the additional employees are not as productive as the previous employees; perhaps they spend too much time chatting with each other or checking their email and Facebook pages. As the firm expands, output increases but at a decreasing rate. At some point, long-run average total costs can increase.
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To say that the natural rate of unemployment changes over time is to say that
a. the short-run Phillips curve shifts over time. b. the long-run Phillips curve shifts over time. c. the aggregate demand curve shifts over time. d. the Federal Reserve influences the natural rate of unemployment over time.
Technological advance improves productive efficiency by:
A. lowering average total cost. B. increasing marginal utility. C. enhancing monopoly power. D. giving society a more-preferred mix of goods and services.