All of the following are true regarding managerial diseconomies except which one?
A)They affect a firm's total profit.
B)They cause an increase in a firm's total profit.
C)They can increase as a firm expands its scope of operations.
D)They can increase as a firm adds more plants.

Question

Quizplus · Accepted Answer

Managerial diseconomies refer to the increase in costs and decrease in efficiency that occur when a firm becomes too large and complex for its managers to effectively coordinate and control. As a result, they can negatively impact a firm's total profit. Therefore, option B is not true. Options A, C, and D are all true.

All of the Following Are True Regarding Managerial Diseconomies Except