The main source of economies of scale is
A) better management.
B) constant returns to plant size.
C) specialization.
D) long-run cost curves eventually sloping downward.
E) increases in the labor force not matched by increases in the plant size.

Question

Quizplus · Accepted Answer

Specialization is the main source of economies of scale. As the scale of production increases, specialized equipment and skilled labor can be utilized more efficiently, resulting in lower costs per unit.

The Main Source of Economies of Scale Is