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industrial action is more likely to occur within a large organisation than a small organisation, due to senior management becoming re managers becoming complacent, as well as shop floor hostility. The effect of this will be an increasing average cost as production
The statement above is most closely describing an example of which of the following?
Suggested Answer: B
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29 comments · newest first
RA
Raymon
11 months ago
Not sure if this always leads to higher costs though.
WH
Whitney
11 months ago
Interesting point about shop floor hostility!
DA
Dalene
11 months ago
Really? I thought small companies had their own issues too.
GI
Gilma
12 months ago
Totally agree, complacency is a big issue!
HA
Hassie
12 months ago
Large orgs often face more industrial action.
ER
Ernestine
1 year ago
I’m confused about the difference between internal and external economies. Could this be an internal diseconomy since it mentions shop floor hostility?
YE
Yesenia
1 year ago
This reminds me of a practice question we did about how large firms can face higher costs due to inefficiencies. I think it’s definitely related to internal factors.
CA
Cathrine
1 year ago
I’m not entirely sure, but I think the answer might be B, since it talks about issues within the organization itself.
LA
Lashonda
1 year ago
I remember discussing how internal diseconomies of scale can arise from management issues and employee dissatisfaction.
CY
Cyndy
1 year ago
Okay, I think I've got it. The key is that the passage is describing how the large organization's size is leading to these issues, so it's an internal diseconomy of scale. The external factors like hostility are a result of the organization's size, not the cause. I'm feeling pretty confident about B.
IL
Ilda
1 year ago
Hmm, I'm a bit confused by this one. The passage mentions both senior management complacency and shop floor hostility, so I'm not sure if it's just an internal diseconomy or if there could be external factors at play as well. I'll have to think this through carefully.
DO
Domonique
1 year ago
This question seems straightforward. The passage talks about how industrial action is more likely in large organizations, leading to higher costs, so I think the answer is B - Internal diseconomy of scale.
DE
Desmond
1 year ago
This is a tricky one. The passage talks about both internal and external factors, so I'm not sure if it's just an internal diseconomy. I might need to re-read it a few times to make sure I understand the distinction between the different types of economies and diseconomies of scale. I don't want to rush into an answer on this one.
LE
Leanora
2 years ago
This is a tough one, but I'm going to have to go with B) Internal diseconomy of scale. The description just seems to match up with that concept the best, even if it's a bit convoluted. Let's hope the graders are feeling generous!
JU
Jutta
2 years ago
I'm not sure, but I'll go with B) Internal diseconomy of scale as well. It seems to fit the description the best.
CA
Casey
2 years ago
I think it could also be external diseconomy of scale, considering the impact of external factors on the organization.
TH
Therese
2 years ago
I agree, it does seem like a case of internal diseconomy of scale.
GR
Graciela
2 years ago
But isn't shop floor hostility also a factor? Maybe it's a combination of internal and external diseconomies of scale.
JO
Joesph
2 years ago
Haha, this question is trying to trip us up! But I think the answer is still B) Internal diseconomy of scale. Gotta stay on your toes in these exams, am I right?
PA
Paulene
2 years ago
I agree with Norah, senior management becoming complacent can lead to increased costs.
MO
Mollie
2 years ago
Hmm, I'm not sure about this one. The question seems a bit tricky. Let me think... I'll go with B) Internal diseconomy of scale. Sounds like the best fit to me.
LA
Lavonda
2 years ago
I think the correct answer is B) Internal diseconomy of scale. The description of industrial action and rising costs due to management complacency and shop floor hostility seems to fit the concept of internal diseconomies of scale.
CL
Clarence
2 years ago
It's definitely a challenge for large organizations to maintain efficiency and avoid internal diseconomies of scale.
CA
Carmela
2 years ago
Maybe implementing better communication strategies could help prevent industrial action.
GA
Galen
2 years ago
I think it's important for management to address these issues before they escalate.
JU
Justine
2 years ago
I agree, it does seem like a case of internal diseconomy of scale.
VI
Vivienne
2 years ago
Yes, it makes sense that larger organizations would be more prone to this kind of issue.
OM
Omer
2 years ago
I agree, it does seem like a case of internal diseconomy of scale.
NO
Norah
2 years ago
I think the statement is describing internal diseconomy of scale.