Have an account?
Skip to Content
Build your own quiz
20 questions
Show Answers
See Preview
- 1. Multiple ChoiceIf a firm doubles its use of inputs and finds that output increases by 50%, then it has experiencedGrowthEconomies of scaleDiseconomies of scaleEvolution
- 2. Multiple ChoiceInternal 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
- 3. Multiple ChoiceWhich 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
- 4. Multiple ChoiceIf 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
- 5. Multiple ChoiceInternal 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
- 6. Multiple ChoiceExternal 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
- 7. Multiple ChoiceExternal economies of scale are cost savings available to the whole ________ as a result of its __________.Industry, LocationBusiness, LocationIndustry, SizeBusiness, Size
- 8. Multiple ChoiceIf a firm doubles its use of inputs and finds that output increases by 50%, then it has experiencedGrowthEconomies of scaleDiseconomies of scaleEvolution
- 9. Multiple Choice
Machinery is likely to be efficient. what economies it indicate?Financial EconomiesBuying EconomiesTechnical EconomiesManagerial Economies - 10. Multiple Choice
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
- 11. Multiple Choice
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
- 12. Multiple Choice
How many different types of economies of scale are there
1
2
3
4
- 13. Multiple Choice
What do diseconomies of scale mean?
They're cheaper
They're more expensive
It's all management's fault
- 14. Multiple Choice
cost incurred at the time of temporary suspension of the production process
Close down cost
Abandonment cost
Shut down cost
Operation cost
- 15. Multiple Choice
money that has already been spent and which cannot be recovered.
Opportunity cost
Sunk cost
Out-of-pocket cost
Book cost
- 16. Multiple Choice
total cost equals
TFC-TVC
TFC+TVC
TFC X TVC
NONE OF THE ABOVE
- 17. Multiple ChoiceTotal Costs / Quantity = _____Marginal CostAverage Total CostImplicit CostExplicit Cost
- 18. Multiple ChoiceVariable Cost/Quantity = _______Marginal Variable CostAverage Fixed CostAverage Variable CostMarginal Total Cost
- 19. Multiple ChoiceTotal Revenue - Total Cost = _____ProfitRevenueMarginal RevenueVariable Revenue
- 20. Multiple ChoiceThe market value of all the inputs a firm uses in production.Implicit CostsExplicit CostsTotal CostsMarginal Costs
- Answer choicesTagsAnswer choicesTags