2
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I encountered the following question:

Which of the following will NOT exist in a one-man economy?
1. competition
2. private property rights
3. economies of scale

Turns out the answer was 1 and 2. I sort of understand why 1 and 2 won't exist but I don't really understand 3. How does economies of scale exist in a one-man economy?

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  • $\begingroup$ For many tasks you can get more than twice as much done in two hours as in one. This can arise because of the cognitive costs of task switching, setup and cleanup costs, or taking advantage of production processes which take longer but are much more productive per unit time. $\endgroup$ – BKay Jun 7 '16 at 17:10

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