All of the following are true regarding managerial diseconomies except which one?
A)An increase in the required expertise of managers is a type of managerial diseconomy.
B)Managerial diseconomies are a cost associated with vertical integration.
C)Managerial diseconomies incentivize vertical integration.
D)Increased complexity of the firm is a type of managerial diseconomy.

Question

Quizplus · Accepted Answer

Managerial diseconomies refer to the increased costs that come with larger firms due to the difficulties in coordinating and managing more employees and resources. It is not an incentive for vertical integration, but rather a cost that needs to be minimized or avoided. A, B, and D are all true statements regarding managerial diseconomies.

All of the Following Are True Regarding Managerial Diseconomies Except