Which of the Following Correctly Explains Increasing Returns to Scale

question 22

Multiple Choice

Which of the following correctly explains increasing returns to scale?

• A)With small scale operations,management inefficiencies are avoided.
• B)Increasing the number of workers in a factory allows division and specialization of labor.
• C)Firms that operate in small industries have higher input procurement costs.
• D)Communication channels in large organizations tend to be complex.

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Definitions:

Retrofitting

The process of adding new technology or features to an existing system, machine, or building to improve its functionality or performance.

R-12

Theoretically illegal but still available refrigerant. GWP rating is 10,900.

Vacuum Pump

A device that removes gas molecules from a sealed volume in order to create a partial vacuum.

Refrigerant Container

A special container designed to hold refrigerant, a substance used in air conditioning systems to absorb and release heat, under pressure.