The fact that a large-scale operation can take advantage of specialization of labor often gives rise to _____.
A)constant marginal rate of substitution
B)diseconomies of scale
C)increasing returns to scale
D)management inefficiencies

Question

Quizplus · Accepted Answer

Increasing returns to scale occur when the output increases by a greater percentage than the increase in inputs. This is often due to specialization of labor and other factors that allow for increased efficiency in a large-scale operation.

The Fact That a Large-Scale Operation Can Take Advantage of Specialization