Which of the following provides the best explanation for diseconomies of scale?
a. the firm is too small to take advantage of specialization.
b. large management structures may be bureaucratic and inefficient.
c. if there are too many employees, the work place becomes crowded and people become less productive.
d. average fixed costs are rising.
B
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Foreign direct investment that takes the form of purchasing an existing plant is often called:
a. acquisition FDI. b. greenfield FDI. c. requisition FDI. d. brownstone FDI.
A gas station in the mountains of Oregon has a monopoly over the retail gas market within a 50-mile radius. The station decides not to price discriminate. As a result, all consumers will pay
A) the highest price each consumer is willing to pay. B) the lowest price possible. C) a single price. D) multiple prices. E) a price that depends on their willingness to pay.