Which of the following is not a source of economies of scale? a. Division and specialization of labor b. Increase in output c. More efficient use of capital d. All of the above e. Centralized marketing

Economies of scale arise when a company can gain cost advantages through increasing its production or scale of operations. This can be achieved through different ways, such as division and specialization of labor, more efficient use of capital, or centralized marketing.

Let's briefly describe each option and see whether they can contribute to economies of scale: a. Division and specialization of labor: This refers to breaking down the production process into smaller tasks and assigning them to specialized workers. This can lead to increased efficiency and lower average costs as the scale of production increases. b. Increase in output: When output increases, it can lead to lower unit costs due to more effective utilization of resources, whether it's labor or capital. It is important to note that increasing output by itself may not contribute to economies of scale; it's more about the impact on unit costs and efficiency of the resources in the process. c. More efficient use of capital: As the scale of operations increases, businesses can invest in advanced technology and machinery, leading to more efficient production processes and lower unit costs. d. All of the above: This option suggests that all the other options contribute to economies of scale. e. Centralized marketing: Centralizing marketing efforts can lead to cost savings through consistent messaging, reduced duplication, and increased purchasing power. It can also contribute to economies of scale as it allows the company to leverage its marketing efforts across a larger scale of operation.

Based on our analysis, we can see that all of the options have the potential to contribute to economies of scale. Therefore, the correct answer is: d. All of the above