c) falls 25. Adam Smith noted each of the following economies of scale except (LO7) 3 a) specialization b) employment of expensive equipment c) saving of time that would otherwise be spent going from one task to another d) diminishing returns 26. In general, as output rises you first attain (LO6) a) increasing returns, then diminishing returns, then negative returns b) diminishing returns, then negative returns, then increasing returns c) negative returns, then increasing returns, then diminishing returns d) increasing returns, then negative returns, then diminishing returns