Three main sources generate economies of scale:
A)Specialization, indivisibilities, and R&D
B)Technical input-output relationship, indivisibilities, and scale effect on advertising
C)Indivisibilities, specialization, and division of labor
D)Technical input-output relationship, specialization, and indivisibilities

Question

Quizplus · Accepted Answer

The technical input-output relationship allows for efficient production processes, specialization leads to increased productivity in specific areas, and indivisibilities result in lower costs as production increases. Thus, D is the best choice as it includes all three sources that generate economies of scale.

Three Main Sources Generate Economies of Scale