Which of the following is NOT a reason a firm might experience economies of scale?
A) specialization
B) dimensional factors
C) increasing long-run average costs
D) more productive equipment

Question

Quizplus · Accepted Answer

Increasing long-run average costs refers to the concept of diseconomies of scale, where a firm experiences cost increases as output increases. The other choices (specialization, dimensional factors, more productive equipment) all contribute to economies of scale, where a firm experiences cost savings as output increases.

Which of the Following Is NOT a Reason a Firm