The primary source of scale diseconomies appears to be
a. a firm's inability to acquire quality resources
b. too little demand for the firm's product
c. consumers who resist dealing with large firms
d. division of labor
e. the organizational difficulties of managing an ever larger enterprise
E
You might also like to view...
A government that generates revenue mostly through an inflation tax faces the risk of:
A) rapidly falling prices. B) hyperinflation. C) mass tax evasion. D) a sudden fall in revenue.
Hudson Manufacturing is an MNE based in the United States with operations in Asia. The firm is considering expansion into the European Union. Which of the following questions is most relevant to the decision?
A) What is the primary language of most workers? B) Which country has the best production location? C) Which currency has the most favorable value of the euro? D) Which country has the lowest tariffs for manufactured products?
The sampling variance for the instrumental variables (IV) estimator is larger than the variance for the ordinary least square estimators (OLS) because _____.
A. R2> 1 B. R2< 0 C. R2 = 1 D. R2< 1
Gamma has $30,000 of capital per worker, while Omega has $7,500 of capital per worker. In all other respects, the two countries are the same. According to the principle of diminishing returns to capital, an additional unit of capital will increase output ________ in Gamma compared to Omega, holding other factors constant.
A. less B. more C. by the same amount D. not at all