Diseconomies of scale occur mainly because:
A. Of the law of diminishing returns
B. Firms in an industry must be relatively large in order to use the most efficient production techniques
C. Of the inherent difficulties involved in managing and coordinating a large business enterprise
D. The short-run average total cost curve rises when marginal product is greater than average total cost
C. Of the inherent difficulties involved in managing and coordinating a large business enterprise
You might also like to view...
An establishment survey is used to calculate
A) the unemployment rate. B) the level of payroll employment. C) both the unemployment rate and the level of payroll employment. D) neither the unemployment rate nor the level of payroll employment.
Which of the following is a financial intermediary?
a. a mutual fund b. the stock market c. a U.S. government bond d. a wealthy individual who regularly buys and holds large quantities of government bonds
List the reasons why the actual multiplier, which is estimated to be less than 2 for the U.S. economy, is much less than what the oversimplified formula suggests.
What will be an ideal response?
From an economic perspective, the costs of trade barriers
A. are lower than benefits for domestic producers and workers. B. are outweighed by the reduction in foreign competition provided by the barriers. C. far exceed their benefits for society. D. are about equal to the benefits.