Coordination problems in large firms might lead to
A) horizontal marginal cost curves.
B) downward-sloping marginal cost curves.
C) upward-sloping short-run average cost curves.
D) upward-sloping long-run average cost curves.

Question

Quizplus · Accepted Answer

Coordination problems in large firms can lead to inefficiencies such as duplication of efforts, miscommunication, and delays in decision making. These inefficiencies can result in higher costs, leading to upward-sloping long-run average cost curves for the firm.

Coordination Problems in Large Firms Might Lead to