The table given below shows the average total cost of production of a firm at different levels of the output.Table 8.5

-Which of the following may lead to diseconomies of scale?
A)Specialization on the basis of comparative advantage
B)Lack of coordination among the division heads
C)Using larger and more efficient machineries
D)Division of labor on the basis of capability
E)Specialization of marketing, pricing, and research

Question

The table given below shows the average total cost of production of a firm at different levels of the output.Table 8.5
 
-Which of the following may lead to diseconomies of scale?
A)Specialization on the basis of comparative advantage 
B)Lack of coordination among the division heads 
C)Using larger and more efficient machineries 
D)Division of labor on the basis of capability 
E)Specialization of marketing, pricing, and research

Quizplus · Accepted Answer

Lack of coordination among the division heads may lead to inefficiencies, duplication of efforts, and conflicts that may result in diseconomies of scale. The other choices listed could lead to economies of scale by enhancing production efficiency, reducing costs, and increasing productivity.

The Table Given Below Shows the Average Total Cost of Production