Under which conditions might economies of scale result?
A) hampered coordination brought about by bureaucracy
B) increasing costs of inputs
C) increasing output prices
D) workers having to spend less time switching back and forth between tasks.

Question

Quizplus · Accepted Answer

Economies of scale arise when the cost per unit of output decreases as the size or scale of production increases. If workers spend less time switching between tasks, they become more specialized and efficient, which leads to a decrease in average costs and potentially creates economies of scale. The other options - bureaucracy, increasing input costs, and increasing output prices - do not necessarily lead to economies of scale.

Under Which Conditions Might Economies of Scale Result