PRC-3 · Chapter 12 · Question 46 of 69
Which of the following is NOT a recognized source of 'Economies of Scale' for a large manufacturing firm?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: C) The law of diminishing marginal returns
Explanation
Diminishing returns is a short-run concept that increases costs, whereas bulk buying, specialization, and heavy machinery are long-run factors that create economies of scale and lower average costs.
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