Which of the following is NOT a reason a firm might experience economies of scale?
A) Specialization
B) Dimensional factors
C) Increasing long-run average costs
D) More productive equipment

Question

Quizplus · Accepted Answer

Increasing long-run average costs indicate that the firm is experiencing diseconomies of scale, not economies of scale. A and D suggest specialized labor and more productive equipment, respectively, are factors that could lead to lower per-unit costs, while B refers to factors such as a larger production facility that can lead to economies of scale.

Which of the Following Is NOT a Reason a Firm