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10 November, 10:01

Which is not a pecuniary economy of scale?

buying inputs in bulk

using machines to do tasks efficiently

borrowing at lower interest rates

discounts from large-scale marketing

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  1. 10 November, 12:21
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    Answer: Option using machines to do tasks efficiently

    Explanation:

    Pecuniary economy means a situation at when low cost is incurred in using factors of production. This type of economies can be achieved by the firms when they adopt bulk buying of the inputs. They allocate the finance efficiently by borrowing at a lower interest rate.

    The advertising cost is also reduced by using mass marketing techniques. It will reach larger audience group at lesser prices. Here all the factors of production are used in ample quantities but obtained at discounted price.
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