A fast food chain that owns all of its own stores finds that as it grows, in ddition to the staff that run each store, it must hire an increasing number of middle managers to to coordinate operations. O This is a side effect of increasing returns to scale that cannot be avoided This can only indicate poor hiring practices. It says nothing about the size of the company This indicates increasing returns to scale and indicates that the company should cut back on growth. This indicates diminishing returns to scale and indicates the company should sell some of their restaurants to outside investors