The main source of economies of scale is
A) reductions in the price of factors of production.
B) greater specialization of both labor and capital.
C) increasing average costs.
D) decreasing marginal product.
E) the ability to hire less labor.

Question

Quizplus · Accepted Answer

Greater specialization of both labor and capital allows firms to produce more efficiently and effectively, leading to lower average costs and therefore economies of scale.

The Main Source of Economies of Scale Is