All of these could be sources of economies of scale except
A)Investment in more efficient technology
B)Specialization
C)A bottleneck procedure
D)Discounts on bulk purchase of inputs

Question

​All of these could be sources of economies of scale except
A)​Investment in more efficient technology
B)Specialization
C)A bottleneck procedure
D)​Discounts on bulk purchase of inputs

Quizplus · Accepted Answer

A bottleneck procedure refers to a step in the production process that slows down the entire process and reduces efficiency. It is not a source of economies of scale, but rather an obstacle to achieving them. The other choices (A, B, and D) are all sources of economies of scale. Investing in more efficient technology, specialization, and purchasing inputs in bulk can all lead to lower average costs as output increases, which is the key characteristic of economies of scale.

​All of These Could Be Sources of Economies of Scale

All of These Could Be Sources of Economies of Scale