question archive If I hire so many new employees to the point where not all of them have a desk and they are bumping into each other in a small office, then I have a situation of: A) Net loss
If I hire so many new employees to the point where not all of them have a desk and they are bumping into each other in a small office, then I have a situation of: A) Net loss
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If I hire so many new employees to the point where not all of them have a desk and they are bumping into each other in a small office, then I have a situation of:
A) Net loss.
B) Economic net loss.
C) Economies of scale.
D) Diseconomies of scale.
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If a large number of workers are hired and they start bumping into each other then there is a possibility that the overall production capacity of the workers will reduce and the cost per worker will increase. In this scenario, the average cost will increase with the output value, and this scenario is known as the diseconomies of scale.
Therefore, the correct option is (d).
