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
You might also like to view...
________ unemployment is NOT associated with economic fluctuations
A) Frictional B) Cyclical C) Structural D) both A and C
During the 1980s, the top marginal tax rate on personal income was reduced from 70 percent to less than 40 percent and it has remained below 40 percent since that time. In recent years, the share of the personal income tax collected from the top one-half of one percent of earners has
a. fallen sharply from the level of years prior to 1981. b. increased sharply during the Clinton administration, but declined substantially during the administration of George W. Bush. c. been virtually unchanged from the level of years prior to 1981. d. increased substantially from the level of years prior to 1981.
The basic premise behind worker trade-offs in a market economy is that:
A. workers decide how to allocate their time between work and leisure. B. workers don't decide how much leisure to have. The amount of leisure depends on the number of hours they must work, which is determined by the firm. C. the trade-off between work and leisure is determined by factors other than what workers or firms would determine to be optimal. D. firms decide how much workers must work and workers decide how much leisure to have.
According to the structural stagnation hypothesis, the expansionary policy carried out by the government led to the illusion that the policies were:
A. improving U.S comparative advantages. B. effective in reducing the trade deficit. C. causing goods inflation. D. leading to long-term economic health.