Asked by Antonio DjToniko on Jul 22, 2024
Verified
A firm that has diminishing returns in the management's ability to use and disseminate information as it increases production in the long run BEST demonstrates:
A) economies of scale.
B) diseconomies of scale.
C) being too small for the relevant market.
D) not having enough managers.
Diseconomies of Scale
Occur when a company or business grows so large that the costs per unit increase.
Management
The process of directing and controlling a group of people or an organization to achieve a set goal by using resources efficiently and effectively.
Information Dissemination
Information dissemination is the process of distributing or spreading information to a wide audience, often through various media or communication channels.
- Identify how changes in output affect long-run average total cost.
- Examine how scale influences production expenses over both short-term and long-term periods.
Verified Answer
MP
Mackenzie PfeiferJul 25, 2024
Final Answer :
B
Explanation :
Diminishing returns in management's ability to use and disseminate information as production increases indicates the occurrence of diseconomies of scale. This means that as the firm grows, it becomes more difficult to manage and coordinate various functions, resulting in higher costs and lower efficiency.
Learning Objectives
- Identify how changes in output affect long-run average total cost.
- Examine how scale influences production expenses over both short-term and long-term periods.