The answer is "Modern technology".

Here's why:

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. Reduced production inputs: This can lead to cost savings and improved efficiency, but it's not necessarily linked to extensive economies of scale.

2. 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economics that refers to the incessant product and process innovation mechanism by which new production units replace outdated ones.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.

3. Barriers to entry: These are obstacles that make it difficult for new competitors to enter a market. They don't directly cause extensive economies of scale.

4. Modern technology: This can lead to extensive economies of scale because it can increase production levels and efficiency. For example, a company that invests in a new technology that automates part of its production process can produce more units at a lower cost, leading to economies of scale.

Question

The answer is "Modern technology".

Here's why:

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. Reduced production inputs: This can lead to cost savings and improved efficiency, but it's not necessarily linked to extensive economies of scale.

2. 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economics that refers to the incessant product and process innovation mechanism by which new production units replace outdated ones.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.

3. Barriers to entry: These are obstacles that make it difficult for new competitors to enter a market. They don't directly cause extensive economies of scale.

4. Modern technology: This can lead to extensive economies of scale because it can increase production levels and efficiency. For example, a company that invests in a new technology that automates part of its production process can produce more units at a lower cost, leading to economies of scale.

Knowee AI · Accepted Answer

The answer is "Modern technology".

Here's why:

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. Reduced production inputs: This can lead to cost savings and improved efficiency, but it's not necessarily linked to extensive economies of scale.

2. 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.

3. Barriers to entry: These are obstacles that make it difficult for new competitors to enter a market. They don't directly cause extensive economies of scale.

4. Modern technology: This can lead to extensive economies of scale because it can increase production levels and efficiency. For example, a company that invests in a new technology that automates part of its production process can produce more units at a lower cost, leading to economies of scale.

Multiple Choice QuestionWhich of the following can be a cause of extensive economies of scale?Multiple choice question.Reduced production inputsCreative destructionBarriers to entryModern technology

Question

Solution

Similar Questions

Upgrade your grade with Knowee