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State Whether Each of the Following Scenarios Shows Economies of Scale

Question 103

Essay

State whether each of the following scenarios shows economies of scale or diseconomies of scale.
a)Increase firm size leads to greater problems in communication between the firms major stakeholders.
b)Increase firm size creates coordination problems among departments.
c)Increase firm size leads to greater specialization of management.
d)Increase firm size enables greater division of labour.

Correct Answer:

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a)Diseconomies of sc...

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