Diseconomies of scale tend to occur in large firms because
a. the many layers of management are cumbersome and because it is difficult to monitor employees
b. such firms are operating at inappropriate plant sizes for their output levels
c. such firms are operating at a point above their long-run average total cost curves
d. their ability to adjust their plant sizes is constrained by the existence of fixed inputs
e. they fail to garner all the possible gains from specialization
A
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Assume that labor is the only variable input and that an additional input of labor increases total output from 72 to 78 units. If the product sells for $6 per unit in a perfectly competitive market, then the marginal revenue product of this additional worker is:
a. $78. b. $72. c. $36. d. $39. e. $6.
Tax saving so that people spend more and firms' profits are higher
Answer the following statement(s) true (T) or false (F)