Which of the following examples is experiencing diseconomies of scale?
a. As the Chewy sandwich chain expanded, it received volume discounts on meats, produce, paper products, and other items.
b. As the Polaris marketing firm expanded overseas, the difficulty of managing the enterprise across several languages and time zones led to higher average costs.
c. Costs at Patel Accounting LLC are steady regardless of how many clients the firm has.
d. Northside Rehabilitation was able to cut costs while expanding by having its staff specialize in different treatment methods.
b. As the Polaris marketing firm expanded overseas, the difficulty of managing the enterprise across several languages and time zones led to higher average costs.
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In the circular flow model, households demand resources such as labor services in the product market
Indicate whether the statement is true or false
An indifference curve is negatively-sloped because:
A) utility is a subjective concept. B) as the consumer obtains additional units of one good, the consumer is willing to sacrifice increasing amounts of the other good. C) in order to remain at the same level of utility, if an individual gets more of one good, he must sacrifice some of the other good. D) marginal utility is constant along an indifference curve, and increases in the consumption of one good cause the price of that good to fall.
A telecommunication company divided into different divisions for residential and business Internet service is an example of
a. An M-form of an organization b. A functional organization c. An N-form organization d. All of the above
The law of diminishing returns states that as more workers are hired, beyond some point,
a. total output will fall b. total cost will fall c. marginal physical product will fall d. total cost will rise e. total output will rise