The Division of Labour and Increasing Returns to Scale

Under what circumstances would Adam Smith's statement "the division of labour is limited by the extent of the market" be valid. This paper shows the validity of Smith's law depends not on increasing returns to scale, but on the effect of scale on economies of scope (i.e. cost complementarities among productive activities)

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Year of publication:	1979
Authors:	Brander, James A.
Institutions:	Economics Department, Queen's University

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Series:	Working Papers.
Type of publication:	Book / Working Paper
Notes:	1 pages long
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10005787762