One of the Reasons Why Economies of Scale Exist Is

question 194

True/False

One of the reasons why economies of scale exist is that the opportunity for labor specialization tends to increase as the size of the firm grows.

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Definitions:

Economic Profit

The difference between total revenue and total costs, including both explicit and implicit costs, indicating the financial performance beyond the break-even point.

Human Capital

The collective skills, knowledge, or other intangible assets of individuals that can be used to create economic value.

Physical Capital

Tangible assets used in the production of goods and services, such as machinery and buildings.

Generates Output

The process of producing or delivering a result, product, or service from a set of inputs or processes.