Asked by
Jaspinder Singh
on Oct 12, 2024
Verified
Adam Smith used a pin factory to demonstrate
A) the advantages of economies of scale.
B) diseconomies of scale.
C) the long-run average cost curve.
D) the advantage of being established.
Economies Of Scale
Companies achieve cost benefits when their production processes become more efficient, leading to a decrease in the per-unit cost as the scale of production grows.
Pin Factory
An example used by Adam Smith to illustrate how division of labor increases productivity.
- Gain insight into the connection between output volume and the ideas of economies of scale and diseconomies of scale.
- Identify sectors that gain advantages from economies of scale and those that remain unaffected.
Verified Answer
FA
Learning Objectives
- Gain insight into the connection between output volume and the ideas of economies of scale and diseconomies of scale.
- Identify sectors that gain advantages from economies of scale and those that remain unaffected.
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