As a firm grows bigger,it becomes:
A) more effective in monitoring and motivating employees.
B) less vulnerable to bureaucratic inertia.
C) less efficient in R&D due to loss of managerial control.
D) increasingly easy for individual scientists to appropriate the returns of their efforts.

Question

Quizplus · Accepted Answer

As a firm grows larger, it often faces challenges in maintaining the same level of managerial oversight and control, which can lead to inefficiencies in areas like Research and Development (R&D). This is due to the complexity and the bureaucratic layers that typically increase with the size of the organization, making it harder to manage and control all aspects effectively.

As a Firm Grows Bigger,it Becomes