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:
Answer : 1) The answer is option D.
When quantity increase, if long-run average total cost decrease then the situation is called increasing returns to scale. Increasing returns to scale is also known as economies of scale. Therefore, option D is correct.
2) The answer is option C.
If quantity does not depend on long-run average total cost then the situation is called constant returns to scale. Constant returns to scale is also known as constant economies of scale. Therefore, option C is correct.
3) The answer is option B.
Commodities are a special standardized goods and homogeneous. No matter who are producing commodities. As options A, C and D are correct hence the answer is option B.
4) The answer is option B.
In perfectly competitive market in long-run many firms enter or exit from the market. This is an assumption of perfectly competitive market. Therefore, option B is correct.
Economies of scale refers to when: In the long run when average total cost does not...
(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...
13. As output (plant size) increases, economies of scale occur when the A) long-run average cost increases. B) long-run average cost decreases. C) short-run average total cost decreases. D) long-run average cost stays constant 14. Economies of scale can occur as a result of which of the following? A) increasing marginal costs as the firm increases its size B) higher fixed cost as the firm increases its size C) management difficulties as the firm increases its size D) greater specialization...
If the long-run average total cost curve for a firm is horizontal in a relevant range of production, then it indicates that there rev: 06_26_2018 Multiple Choice isn’t a minimum efficiency scale. are diseconomies of scale. are economies of scale. are constant returns to scale.
2. Economies of scale refers to when: 6. Suppose Winston's annual salary as an accountant is $60,000, and his financial assets generate $4,000 per year in interest. One day, after deciding to be his own boss, he quits his job and uses his financial assets to establish a consulting business, which he runs out of his home. To run the business, he outlays $8,000 in cash to cover all the costs involved with running the business, and earns revenues of...
Economies of scale occur when: Select one: a. the long-run average cost rises as output increases. b. the marginal cost falls as output increases. c. average fixed costs are constant. d. the long-run average cost falls as output increases
Increasing returns to scale is characterized by: a. economies of scale; that is, the average cost falls as output rises. b. constantly declining fixed costs. c. diseconomies of scale; that is, the average cost is constant as output rises. d. diseconomies of scale; that is, the average cost falls as output rises. e. economies of scale; that is, the average cost rises as output rises.
QUESTION 30 A downward-sloping portion of a long-run average total cost curve is the result of: economies of scale. diseconomies of scale. diminishing returns. the existence of fixed resources. 2.5 points QUESTION 31 In the long run, firms in many industries often experience a falling average total cost curve as a result of: gains through trade. increasing marginal returns. economies of scale. lower fixed costs. 2.5 points QUESTION 32 A large aircraft manufacturer, like Boeing, may have a...
1. The long-run average cost curve slopes upward if there are: A. economies of scale B. diseconomies of scope in the management of multiplant operates C. Some factors without diminishing marginal returns D. diseconomies of scale E. no factor without diminishing marginal returns
QUESTION 11 At the current level of output, long-run marginal cost is $50 and long-run average cost is $75. This implies that: there are neither economies nor diseconomies of scale. there are economies of scale. there are diseconomies of scale. the cost-output elasticity is greater than one.
In the graph below, economies of scale are present at Long-Run Average Cost Curve Long-Run Average Cost ($) A B D E Quantity of Output Point C Point B Point D Point A All of these answers are correct. If the firm described in the table below operates in a perfectly competitive market and the price is $15, what is the profit-maximizing level of output for the firm? Quantity of Camping Chairs 0 Total Cost ($) 7 - 21 2...