Which of the following factors would not explain economies of scale?
A)Increasing returns to scale of inputs.
B)Specialization of labor.
C)Indivisible inputs.
D)Managerial diseconomies

Question

Quizplus · Accepted Answer

Managerial diseconomies refer to the situation when additional management personnel leads to inefficiencies and increased costs, which is the opposite of economies of scale. The other options (A, B, C) are all potential causes of economies of scale. Managerial diseconomies would lead to higher costs and inefficiencies, which is the opposite of economies of scale. The other options (A, B, and C) all contribute to economies of scale by increasing efficiency or reducing costs as production increases.

Which of the Following Factors Would Not Explain Economies of Scale