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.

Question

Quizplus · Accepted Answer

Diseconomies of scale occur when a firm grows too large and inefficiencies arise, such as difficulties in managing and disseminating information effectively.

A Firm That Has Diminishing Returns in the Management's Ability