All of the following,except one,are reasons for economies of scale to be present in production.Which is the exception?
A)Advantages of the division of labour.
B)Management and machine specialization.
C)Lower costs of borrowing.
D)Lower costs of advertising.
E)The law of diminishing returns.

Question

Quizplus · Accepted Answer

Economies of scale refer to the cost advantages that enterprises obtain due to their scale of operation, with cost per unit of output decreasing with increasing scale. The law of diminishing returns, however, is a concept that states that if one factor of production is increased while others are held constant, the output per unit of the variable factor will eventually diminish. This principle is not a reason for economies of scale but rather a limitation to continuous increases in production without decreases in efficiency.

All of the Following,except One,are Reasons for Economies of Scale