Asked by Christopher Flores on May 14, 2024

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Which of the following is not a source of economies of scale?

A) learning-by-doing
B) labor specialization
C) use of larger machines
D) inelastic resource supply curves

Economies of Scale

The cost advantages that enterpises obtain due to their scale of operation, with cost per unit of output generally decreasing with increasing scale.

Learning-by-doing

Learning-by-doing is the process of improving skills and efficiency in a task or operation through practical experience and repetition over time.

Labor Specialization

The division of labor where individuals focus on a narrow area of expertise, improving efficiency and productivity.

  • Pinpoint the contributing factors to economies of scale and their influence on organizational production and cost structures.
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RK
Reinhard KoechMay 20, 2024
Final Answer :
D
Explanation :
Economies of scale are cost advantages reaped by companies when production becomes efficient. Learning-by-doing, labor specialization, and the use of larger machines all contribute to increased efficiency and reduced costs per unit. In contrast, inelastic resource supply curves indicate a situation where the quantity of resources available does not change much with price changes, which does not directly contribute to economies of scale.