Which of the following is not a source of economies of scale?
A) red tape and bureaucracy
B) specialization of management and labor
C) productive capital
D) efficient development and design

Question

Quizplus · Accepted Answer

Economies of scale are cost advantages reaped by companies when production becomes efficient. Red tape and bureaucracy typically add to administrative costs and complexity, hindering rather than contributing to economies of scale. In contrast, specialization of management and labor, productive capital, and efficient development and design all contribute to reducing average costs with increased production.

Which of the Following Is Not a Source of Economies