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