Alarge firm in the 3-d printing industry employs 250 people, of which 36 are upper-level managers. as a result of this employee-to-manager ratio, the firm experiences 14.4% reduced productivity. at the same time, a small firm with 65 employees and 2 upper-level managers experiences 3.1% reduced productivity.
if everything else is constant, what can we say about the cost structure in this industry over this range of production?
choose one:
a. the firms in this industry have economies of scale.
b. the firms in this industry have constant returns to scale.
c. the firms in this industry have diseconomies of scale.