The answer is "Modern technology".

Here is the step by step explanation:

Economies of scale refer to the cost advantage that a business obtains due to expansion. It's the cost advantage that arises with increased output of a product.

1. Creative destruction: This is a concept in economics that refers to the incessant product and process innovation mechanism by which new production units replace outdated ones. It doesn't directly cause extensive economies of scale.

2. Reduced production inputs: While this can reduce costs, it doesn't necessarily lead to extensive economies of scale. Economies of scale are about increasing production and becoming more efficient as production increases.

3. Barriers to entry: These are factors that make it difficult for new firms to enter a market. They do not directly cause extensive economies of scale.

4. Modern technology: This can lead to extensive economies of scale. As a company grows and produces more, it can afford to invest in modern technology that makes production more efficient. This can reduce costs per unit, which is what economies of scale is all about. Therefore, modern technology can be a cause of extensive economies of scale.

Question

The answer is "Modern technology".

Here is the step by step explanation:

Economies of scale refer to the cost advantage that a business obtains due to expansion. It's the cost advantage that arises with increased output of a product.

1. Creative destruction: This is a concept in economics that refers to the incessant product and process innovation mechanism by which new production units replace outdated ones. It doesn't directly cause extensive economies of scale.

2. Reduced production inputs: While this can reduce costs, it doesn't necessarily lead to extensive economies of scale. Economies of scale are about increasing production and becoming more efficient as production increases.

3. Barriers to entry: These are factors that make it difficult for new firms to enter a market. They do not directly cause extensive economies of scale.

4. Modern technology: This can lead to extensive economies of scale. As a company grows and produces more, it can afford to invest in modern technology that makes production more efficient. This can reduce costs per unit, which is what economies of scale is all about. Therefore, modern technology can be a cause of extensive economies of scale.

Knowee AI · Accepted Answer

The answer is "Modern technology".

Here is the step by step explanation:

Economies of scale refer to the cost advantage that a business obtains due to expansion. It's the cost advantage that arises with increased output of a product.

1. Creative destruction: This is a concept in economics that refers to the incessant product and process innovation mechanism by which new production units replace outdated ones. It doesn't directly cause extensive economies of scale.

2. Reduced production inputs: While this can reduce costs, it doesn't necessarily lead to extensive economies of scale. Economies of scale are about increasing production and becoming more efficient as production increases.

3. Barriers to entry: These are factors that make it difficult for new firms to enter a market. They do not directly cause extensive economies of scale.

4. Modern technology: This can lead to extensive economies of scale. As a company grows and produces more, it can afford to invest in modern technology that makes production more efficient. This can reduce costs per unit, which is what economies of scale is all about. Therefore, modern technology can be a cause of extensive economies of scale.

Multiple Choice QuestionWhich of the following can be a cause of extensive economies of scale?Multiple choice question.Creative destructionReduced production inputsBarriers to entryModern technology

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