Asked by
Ramon Trejo
on Nov 25, 2024
Verified
A major factor explaining economies of scale is increased specialization of labor.
Economies of Scale
Cost advantages reaped by companies when production becomes efficient, as the cost per unit of output decreases with increasing scale.
Specialization of Labor
The division of labor where individuals focus on a limited scope of tasks or skills, leading to increased efficiency and productivity.
- Acquire knowledge on the principles governing economies and diseconomies of scale.
Verified Answer
PP
Learning Objectives
- Acquire knowledge on the principles governing economies and diseconomies of scale.
Related questions
If a Firm Increases All Its Inputs by 10 Percent ...
The Law of Diminishing Returns Explains Diseconomies of Scale
Engineers for the Giffen Record Company Have Determined That a ...
On the Upward Sloping Portion of a Firm's Long-Run Average ...
The Supply Room, an Online School Supply Store, Grew Rapidly ...