Asked by Alexa Trischitta on Jul 25, 2024
Verified
Economies of scale commonly arise because of coordination problems.
Economies of Scale
Cost advantages reaped by companies when production becomes efficient, as the scale of the operation and output increases.
Coordination Problems
Challenges that arise in aligning the plans and actions of multiple parties in order to achieve a common goal or optimize outcomes.
- Comprehend the theory and consequences of economies of scale and diseconomies of scale.
Verified Answer
DR
Dishalene RamasamyJul 29, 2024
Final Answer :
False
Explanation :
Economies of scale commonly arise due to the reduction in per-unit costs as the scale of production increases, not because of coordination problems. Coordination problems typically lead to inefficiencies.
Learning Objectives
- Comprehend the theory and consequences of economies of scale and diseconomies of scale.
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