Which of the Following Factors Would Not Explain Economies of Scale

question 89

Multiple Choice

Which of the following factors would not explain economies of scale?

• A)Increasing returns to scale of inputs.
• B)Specialization of labor.
• C)Indivisible inputs.
• D)Managerial diseconomies

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Definitions:

Profit-maximizing Firm

A business organization that focuses on making the highest possible profit by adjusting its production and pricing strategies.

Marginal Cost

The rise in overall expenses associated with the creation of an extra unit of a good or service.

Economic Profit

The difference between total revenues and total costs, including both explicit and implicit costs, representing excess returns over the firm's opportunity costs.

Competitive Market

A market structure characterized by many buyers and sellers, where no single entity can dictate prices, leading to optimal resource allocation.