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- Multiple ChoicePlease save your changes before editing any questions.If a firm doubles its use of inputs and finds that output increases by 50%, then it has experiencedGrowthEconomies of scaleDiseconomies of scaleEvolution
- Multiple ChoicePlease save your changes before editing any questions.Internal diseconomies of scale can be caused byBeing unable to purchase stocks at a discounted priceManagement control being weakened with a larger workforceTraffic congestion causing delays to delivery of important stocksAdvertising costs to a global audience
- Multiple ChoicePlease save your changes before editing any questions.Which of the following is not a cause of internal diseconomies of scale?Poor communication between different departmentsLack of staff morale and motivationLess control, direction and coordination of human resourcesLate deliveries due to congestion in busy locations
- Multiple ChoicePlease save your changes before editing any questions.If a firm increases its use of all factors of production but sees an increase in its average costs, this is a sign ofInternal diseconomies of scaleExternal returns to scaleDiminishing marginal returnsDecreasing returns to scale
- Multiple ChoicePlease save your changes before editing any questions.Internal economies of scale are those thatResult from changes in production techniquesIncrease due to the growth of the industry as a wholeGenerate lower unit costsReduce production costs in the short run
- Multiple ChoicePlease save your changes before editing any questions.External economies of scale can arise fromBulk purchases of raw materials, parts and components at favourable pricesThe introduction and use of advanced technologySpecialised back-up services available in a particular regionLower interest rates, thus reducing the cost of borrowing to large companies
- Multiple ChoicePlease save your changes before editing any questions.External economies of scale are cost savings available to the whole ________ as a result of its __________.Industry, LocationBusiness, LocationIndustry, SizeBusiness, Size
- Multiple ChoicePlease save your changes before editing any questions.If a firm doubles its use of inputs and finds that output increases by 50%, then it has experiencedGrowthEconomies of scaleDiseconomies of scaleEvolution
- Multiple ChoicePlease save your changes before editing any questions.Machinery is likely to be efficient. what economies it indicate?Financial EconomiesBuying EconomiesTechnical EconomiesManagerial Economies
- Multiple ChoicePlease save your changes before editing any questions.
What are diseconomies of scale?
size of a business
falling average costs due to expansion
rising average costs when a firm becomes too big
cost benefits that all firms in an industry can enjoy when the industry expands
- Multiple ChoicePlease save your changes before editing any questions.
This type of internal economies of scale occurs when a large factory for example can make better or more efficient use of specialist machinery compared to a small firm
Economies of Concentration
Economies of Information
Technical Economies of Scale
Managerial Economies of Scale
- Multiple ChoicePlease save your changes before editing any questions.
How many different types of economies of scale are there
1
2
3
4
- Multiple ChoicePlease save your changes before editing any questions.
What do diseconomies of scale mean?
They're cheaper
They're more expensive
It's all management's fault
- Multiple ChoicePlease save your changes before editing any questions.
cost incurred at the time of temporary suspension of the production process
Close down cost
Abandonment cost
Shut down cost
Operation cost
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money that has already been spent and which cannot be recovered.
Opportunity cost
Sunk cost
Out-of-pocket cost
Book cost
- Multiple ChoicePlease save your changes before editing any questions.
total cost equals
TFC-TVC
TFC+TVC
TFC X TVC
NONE OF THE ABOVE
- Multiple ChoicePlease save your changes before editing any questions.Total Costs / Quantity = _____Marginal CostAverage Total CostImplicit CostExplicit Cost
- Multiple ChoicePlease save your changes before editing any questions.Variable Cost/Quantity = _______Marginal Variable CostAverage Fixed CostAverage Variable CostMarginal Total Cost
- Multiple ChoicePlease save your changes before editing any questions.Total Revenue - Total Cost = _____ProfitRevenueMarginal RevenueVariable Revenue
- Multiple ChoicePlease save your changes before editing any questions.The market value of all the inputs a firm uses in production.Implicit CostsExplicit CostsTotal CostsMarginal Costs