Question

Q 6 Which one of the following is a
cause of increasing Returns to
Scale?
Ops:A.
Lack of coordination
B. Division of labour
C. Rise in the prices of inputs​

Answer 1

Answer:

Explanation:

Increasing returns to scale also result from spe­cialisation and division of labour. When the scale of the firm is expanded there is wide scope of speciali­zation and division of labour. Work can be divided into small tasks and workers can be concentrated to narrower range of processes. For this, specialised equipment can be installed. Thus with specialisation, efficiency increases and increasing returns to scale follow

Answer 2

Answer:

divisions of labour because increasing Returns to

Scale.