Increasing marginal returns are generally the result of
A)diseconomies of scale
B)increasing costs
C)specialization and division of labor
D)labor unions
E)technology

Question

Quizplus · Accepted Answer

Increasing marginal returns typically occur when specialization and division of labor are implemented. This means that as workers focus on specific tasks within the production process, they become more efficient and the output per unit of input increases. This is a key principle of the concept of economies of scale, which can result in cost savings for firms. The other options (diseconomies of scale, increasing costs, labor unions, and technology) do not necessarily lead to increasing marginal returns.

Increasing Marginal Returns Are Generally the Result of