When a firm cannot realize the cost savings from economies of scale all by itself, it...
When a firm cannot realize the cost savings from economies of scale all by itself, it will not be successful in realizing those gains if it were to join in a strategic alliance with other firms that together the firms have sufficient volume for scale.
True or False?
Homework Answers
False.
A strategic alliance is an agreement between two or more parties to pursue a set of agreed upon objectives needed while remaining independent organizations.
Hence this alliance would help the firm realize cost savings from economies of scale. The firm will therefore join in a strategic alliance with other firms so that together both firms will have sufficient volume to be able to gain the cost advantages of economies of scale.
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When a firm cannot realize the cost savings from economies of
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Economies of scale refers to when: In the long run when average total cost does not...
Economies of scale refers to when:
In the long run when average total cost does not depend on the
quantity of output, this is called:
Commodities:
We assume that in the long run in a perfectly competitive
market:
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Part 1: When a firm operates with economies of scale, average production costs: 1) rise when...
Part 1:
When a firm operates with economies of scale, average production
costs:
1) rise when the firm gets larger.
2) fall as the firm gets larger.
3) fall as the firm gets smaller.
4) are unaffected by firm size.
Part 2:
“U-shaped” long-run average cost curves show that as firms get
larger, they usually experience:
1) economies of scale.
2) constant returns to scale.
3) diseconomies of scale.
4) a, b, and c, in that order.
Part 3:
This...
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(Click to select) economies of scale a. Long-run average total cost falls as the firm realize: rises when the firm experiences [ (Click to select) diseconomies of scale diminishing marginal returns increasing marginal returns b. The minimum efficient scale is the level of output produced by the smallest firm in the industry. smallest level of output at which a firm can produce. only level of output where long-run average total costs are minimized. smallest level of output needed to attain...
Economies of scale refers to when:
In the long run when average total cost does not depend on the
quantity of output, this is called:
Commodities:
We assume that in the long run in a perfectly competitive
market:
Multiple Choice an increase in the quantity of output increases average total cost in the long run. None are correct. average total cost does not depend on the quantity of output in the long run. an increase in the quantity of output...
O False Question 5 4 pts Economies of scale: O are achieved when a firm reduces its average unit cost of production as it produces more O can be avoided by purchasing supplies and raw materials in large quantities. O help explain the success of small businesses are available to small firms but not to large firms, due to management inefficiencies OS Question 6 4 pt A(n) reflects the fundamental purposes of an organization, and serves as the guiding document...
Part 1:
When a firm operates with economies of scale, average production
costs:
1) rise when the firm gets larger.
2) fall as the firm gets larger.
3) fall as the firm gets smaller.
4) are unaffected by firm size.
Part 2:
“U-shaped” long-run average cost curves show that as firms get
larger, they usually experience:
1) economies of scale.
2) constant returns to scale.
3) diseconomies of scale.
4) a, b, and c, in that order.
Part 3:
This...
5:42 luET 09. Which statement is true? A. Economies of scale are more common when Q is low and occur when increasing production lowers ATC as for natural monopolies. B. Diseconomies of scale are more common when Q is high and occur when increasing production decreases ATC as for natural monopolies. C. Economies of scale are more common when Q is high and occur when increasing production increases ATC as in a perfect competition framework. D. Diseconomies of scale are...
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Respecfully--Please answer all if you are willing to help. This is
over MM propositions anf optimal capital structure theories
QUESTION 1 With perfect capital markets, because different choices of capital structure offer a benefit to investors, the capital structure affects the value of a firm. True False QUESTION 2 Under the assumptions of Modigliani and Miller, a firm's value does not depend on the fraction of its financing that it raises from debt holders vs. equity holders. True False QUESTION...
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