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:

Resources Available

Refers to the total means available for economic and operational development, such as raw materials, manpower, and capital.

Economic Perspective

Viewing issues through the lens of economics, focusing on how resources are allocated, used, and managed to meet needs and achieve objectives.

State Government

The government of a specified state within a country, responsible for local laws and policies distinct from the federal government.

Football Stadium

A facility specifically designed for hosting football (soccer or American football) games and associated events.