Which of the Following Is Not a Reason Why Firms

question 38

Multiple Choice

Which of the following is not a reason why firms experience economies of scale?

• A)Technology can make it possible to increase production with a smaller increase in at least one input.
• B)Workers and managers can become more specialised, enabling them to be more productive.
• C)Larger firms may be able to purchase inputs at lower costs than smaller competitors.
• D)As output increases, the managers can begin to have difficulty coordinating the operations of their firms.

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