If a firm gets so large that management of employees and other resources becomes a costly problem, it will be experiencing
A) diseconomies of scale.
B) diminishing marginal product.
C) constant returns to scale.
D) economies of scale.

Question

Quizplus · Accepted Answer

As the firm grows, it may become difficult for management to effectively handle a larger number of employees and resources. This can result in increased coordination costs, communication difficulties, and other inefficiencies, leading to diseconomies of scale.

If a Firm Gets So Large That Management of Employees