Question

Firms experience economies of scaleLOADING... for several reasons. What is one such​ reason? A firm might experience economies of scale because A. large firms may be required to purchase inputs at higher costs than smaller competitorslarge firms may be required to purchase inputs at higher costs than smaller competitors. B. managers become more specialized comma enabling them to become more productive comma as output expandsmanagers become more specialized, enabling them to become more productive, as output expands. C. managers begin to have difficulty coordinating the operation of the firm. D. as a firm expands comma it may have to borrow money at a higher interest rateas a firm expands, it may have to borrow money at a higher interest rate. E. a​ firm's technology may make it impossible to increase production without a larger proportional increase input usage.

Answer 1

Answer:

managers become more specialized, enabling them to become more productive

Explanation:

Economies of scale is defined as the benefit a company gains by producing at a larger scale. This can result in increased profit because of lower cost per unit input used, use of technology to increase productivity, borrowing of money at lower interest rate.

When a company increases scale of production managers tend to be more specialised and this increases their effiency and productivity in that aspect. This improves overall productivity in the company