Which of the following is NOT a reason why a firm may experience economies of scale?
A) productive specialization
B) dimensional factors
C) improved productive equipment
D) increased layers of management

Question

Quizplus · Accepted Answer

Increased layers of management typically lead to higher administrative and overhead costs, which would not result in any economies of scale. The other options (productive specialization, dimensional factors, and improved productive equipment) all have the potential to increase efficiency and reduce costs as production volume increases.

Which of the Following Is NOT a Reason Why a Firm