Which one of the following is not related to economies of scale:
A)scope for division of labour and specialization
B)scope for getting inputs at cheaper rates
C)difficulty faces by the managers to coordinate the business
D)scope for better storage facilities

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 generally decreasing with increasing scale. Choices A, B, and D are all factors that contribute to economies of scale. Choice C, however, refers to a potential disadvantage of scaling up, as larger organizations can face more complex management and coordination challenges, which is related to diseconomies of scale rather than economies of scale.

Which One of the Following Is Not Related to Economies