Question

If I hire so many new employees to the point where not all of them have...

If I hire so many new employees to the point where not all of them have a desk and they start bumping into each other in the small office, then I have a situation of:

Net loss
Economic net loss
Economies of scale
Diseconomies of scale
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Answer #1

Diseconomies of scale

Reason: Since too many workers have been hired which would lead to worker conflicts and loss of productivity, it would increase average cost of production as output increases. This is a classic case of diseconomies of scale.

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