If the mangers of Special Cakes, a large bakery, acquire an egg farm to produce the eggs for their cakes, the managers of Special Cakes are likely to experience all of the following except which one?
A)a decrease in managerial diseconomies
B)an increase in their required areas of expertise
C)an increase in the complexity of coordination of Special Cakes
D)an increase in managerial diseconomies

Question

Quizplus · Accepted Answer

Acquiring an egg farm will provide Special Cakes with a stable and predictable source of eggs, which will reduce managerial diseconomies. This is because the managers of Special Cakes will no longer have to spend time searching for a reliable supplier and negotiating prices. However, there may be an increase in the complexity of coordination of Special Cakes, as they will now be managing two separate businesses (the bakery and the egg farm). Additionally, the managers of Special Cakes may need to develop new areas of expertise related to egg production and management, which could increase the required areas of expertise. However, since the question is asking for an exception, the correct answer is A.

If the Mangers of Special Cakes, a Large Bakery, Acquire