When a firm has an extremely large output,it will likely experience

A) both economies of scale and diseconomies of scale.
B) neither economies of scale nor diseconomies of scale.
C) economies of scale,but not diseconomies of scale.
D) diseconomies of scale,but not economies of scale.

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Manuel Montalvo · Accepted Answer

Final Answer : A, Explanation :  When a firm has an extremely large output, it will likely experience both economies of scale and diseconomies of scale. Initially, as the firm expands production, it will benefit from economies of scale such as lower average costs due to increased specialization, bulk buying, and more efficient use of capital. However, as production continues to grow, it will eventually reach a point where these benefits plateau or diminish, and the firm may start to experience diseconomies of scale, such as increased bureaucracy, communication problems, and more difficulties coordinating and managing a large workforce.

When a firm has an extremely large output,it will likely experience

A) both economies of scale and diseconomies of scale.
B) neither economies of scale nor diseconomies of scale.
C) economies of scale,but not diseconomies of scale.
D) diseconomies of scale,but not economies of scale.

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When a firm has an extremely large output,it will likely experienceA) both economies of scale and diseconomies of scale.B) neither economies of scale nor diseconomies of scale.C) economies of scale,but not diseconomies of scale.D) diseconomies of scale,but not economies of scale.

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Learning Objectives

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Related questions

When a firm has an extremely large output,it will likely experience

A) both economies of scale and diseconomies of scale.
B) neither economies of scale nor diseconomies of scale.
C) economies of scale,but not diseconomies of scale.
D) diseconomies of scale,but not economies of scale.