"Time compression diseconomies" means:
A)Being unable to achieve sufficient volume in a short time-scale.
B)The extra costs incurred by a second or subsequent mover attempting to quickly catch up the critical mass of a first-mover's key resources.
C)The costs of employing extra staff and paying overtime which make a project uneconomic.
D)Not achieving an economic production level due to lost time e.g. because of a strike.

Question

Quizplus · Accepted Answer

Time compression diseconomies refer to the extra costs incurred by a company trying to catch up with a first-mover who has established a critical mass of resources. These costs can include higher prices for labor and materials, higher marketing costs, and increased logistical expenses, all of which make it more difficult for second or subsequent movers to achieve profitability. Option A is incorrect because it describes a different concept related to production volumes. Option C describes a situation where a project may be uneconomic due to high costs, but it does not relate specifically to time compression. Option D describes a situation where lost time leads to lower production levels, but it does not specifically relate to the concept of time compression diseconomies.

"Time Compression Diseconomies" Means