Which of the following leads to Internal economies of scale?

CA Foundation · Business Economics · MTP · September 2025
Which of the following leads to Internal economies of scale?
(A) A. Technological progress in the industry
(B) B. Development of skilled labour in a region
(C) C. Bulk purchase of raw materials
(D) D. Government tax incentives

Suggested Answer and Working Notes:

Correct Answer: Option (C)

C. Bulk purchase of raw materials

Topics: Theory of Production and Cost

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