Which of the following is not a reason for economies of scale?

Question

Quizplus · Accepted Answer

Increase in overhead expenses is not a reason for economies of scale. Economies of scale occur when the cost per unit decreases as the production volume increases due to factors such as division of labor, specialization, and the use of more efficient machinery. Overhead expenses typically increase as production volume increases, which would work against economies of scale.

Which of the Following Is Not a Reason for Economies