Homework Answers
Answer : The answer is option B.
Economies of scale occur if average total cost decrease when production increase. In case of product specialization, improved productive equipment and increased layer of management the production level increase by decreasing the average total cost. So, the product specialization, improved productive equipment and increased layer of management are the reason of economies of scale. But dimensional factors are not the reason of economies of scale. Therefore, option B is correct.
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Question 17 Which of the following is NOT a reason why a firm may experience economies of scale? O productive specia...
(a) List four reasons why a firm might experience increasing returns to scale (or economies of...
(a) List four reasons why a firm might experience increasing returns to scale (or economies of scale). (b) A firm has the following production function, where Q is output, L is labor and K is physical capital: Q = 30K0.5L0.7 Is this firm operating under increasing, constant, or diminishing returns to scale, and why?
3) Which of the following is NOT a reason why there are gains to specialization? (17pts)...
3) Which of the following is NOT a reason why there are gains to specialization? (17pts) It eliminates many of the costs of switching from one task to another. It further improves skills through experience and practice. It allows individuals to concentrate on the activities in which they have a comparative advantage. It increases the amount productive resources in the economy.
Which of the following events would contribute to economies of scale? Large supermarkets being able to...
Which of the following events would contribute to economies of scale? Large supermarkets being able to drive down the cost of purchasing milk as it increases its scale of business. The expansion of the workforce requiring extra layers of management for better performance monitoring. A merger of two firms leading to savings on the costs of HR, IT, and legal departments. The higher the number of users of Windows 10, the more likely it is that Microsoft will be able...
Which of the following is not a barrier to entry? Government intervention Economies of scale The...
Which of the following is not a barrier to entry? Government intervention Economies of scale The price elasticity of demand Scarce resources Aggressive business tactics Which of the following is is not an example of a barrier to entry that would lead to monopoly power? The government grants a copyright to the author of a book. Firms cannot enter industries in the short run, so there may be a single firm in the industry. To produce oil, a firm must...
O False Question 5 4 pts Economies of scale: O are achieved when a firm reduces its average unit cost of product...
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...
D 22. Which of the following is true for a firm that enjoys economies of scale?...
D 22. Which of the following is true for a firm that enjoys economies of scale? Marginal cost is increasing as output increases. Average total cost is falling as output increases. Marginal cost is constant as output increases. Marginal revenue is falling as output increases.
18. Which of the following is most accurate about the Minimum Efficient Scale (MES) of a firm? O Because a firm has var...
18. Which of the following is most accurate about the Minimum Efficient Scale (MES) of a firm? O Because a firm has various short-run average cost curves, it also has various MES scales. O MES is the scale of operation at which diseconomies of scale starts to dominate. O MES is the scale of operation where at least one short-run average cost starts to increase Specialization of labor can contribute to a firm's productivity only after it has reached its...
Which of the following is NOT a reason that a firm that maximizes profits may fail...
Which of the following is NOT a reason that a firm that maximizes profits may fail to maximize shareholder wealth inguneices sock pice may be soienal O B. Shareholder wealth depends on cash flow which is not the same as profit. ° C. The timing of profits matters. Shareholders might prefer lower profits that arrive sooner. O D. Risk matters. Shareholders are risk averse, so they prefer less risky investments that generate lower profits
O They allow companies to achieve economies of scale. D Question 11 1 pts Which of...
O They allow companies to achieve economies of scale. D Question 11 1 pts Which of the following is a false statement? O A developing nation can gain from international trade because it subjects its producers to greater competition. A developing nation will lose in international trade because it subjects its producers to greater competition. O A developing nation can gain from international trade because it can take advantage of increasing returns to scale due to being able to produce...
QUESTION 30 Which of the following is a reason why the GDP deflator may whow a...
QUESTION 30 Which of the following is a reason why the GDP deflator may whow a different inflation rate than CPI A. The CPI includes government spending whereas the GDP doesn't B. The CP is more accurately measured. C. The GDP deflator is more accurately measured. D. The GDP doesn't include imports whereas the CPI does.
3) Which of the following is NOT a reason why there are gains to specialization? (17pts) It eliminates many of the costs of switching from one task to another. It further improves skills through experience and practice. It allows individuals to concentrate on the activities in which they have a comparative advantage. It increases the amount productive resources in the economy.
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...
D 22. Which of the following is true for a firm that enjoys economies of scale? Marginal cost is increasing as output increases. Average total cost is falling as output increases. Marginal cost is constant as output increases. Marginal revenue is falling as output increases.
18. Which of the following is most accurate about the Minimum Efficient Scale (MES) of a firm? O Because a firm has various short-run average cost curves, it also has various MES scales. O MES is the scale of operation at which diseconomies of scale starts to dominate. O MES is the scale of operation where at least one short-run average cost starts to increase Specialization of labor can contribute to a firm's productivity only after it has reached its...
Which of the following is NOT a reason that a firm that maximizes profits may fail to maximize shareholder wealth inguneices sock pice may be soienal O B. Shareholder wealth depends on cash flow which is not the same as profit. ° C. The timing of profits matters. Shareholders might prefer lower profits that arrive sooner. O D. Risk matters. Shareholders are risk averse, so they prefer less risky investments that generate lower profits
O They allow companies to achieve economies of scale. D Question 11 1 pts Which of the following is a false statement? O A developing nation can gain from international trade because it subjects its producers to greater competition. A developing nation will lose in international trade because it subjects its producers to greater competition. O A developing nation can gain from international trade because it can take advantage of increasing returns to scale due to being able to produce...
QUESTION 30 Which of the following is a reason why the GDP deflator may whow a different inflation rate than CPI A. The CPI includes government spending whereas the GDP doesn't B. The CP is more accurately measured. C. The GDP deflator is more accurately measured. D. The GDP doesn't include imports whereas the CPI does.
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