Economies of scale arise from all of the following sources, EXCEPT:

Question

Quizplus · Accepted Answer

Increasing fixed costs by limiting them to small volumes does not lead to economies of scale. Rather, it would lead to an increase in production costs and may make the production process inefficient. The other options - serving domestic and international markets from the same production facilities, serving global markets, and bargaining with suppliers to bring down the cost of key inputs - can all contribute to achieving economies of scale.

Economies of Scale Arise from All of the Following Sources