Anyone care to explain how exactly decreasing returns to scale (DRS) can lead to specialization? Having come across a few studies showing how large farm enterprises tend to experience DRS, I came to think about this but never really understood the logic behind it. How does specializing increase efficiency in such a case?

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    $\begingroup$ Do you mind linking to a few of these studies? A little extra context goes a long way :) $\endgroup$ – cc7768 Aug 7 '15 at 15:18

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