10 Questions
What does the term 'economies of scale' refer to?
Efficiencies achieved by a firm as it increases in size or scale of operation
Why is manufacturing often referred to as the 'engine of the economy'?
Because manufacturing drives economic growth by producing goods and creating value
What stage of the production process can implement economies of scale according to the text?
At any stage of the production process
Which economic principle allows firms to enjoy lower average costs per unit as they produce more?
Economies of scale
What trend was observed in the manufacturing industry during the second quarter of 2020 according to the information provided?
Improvement in the manufacturing industry
How can operational efficiencies contribute to the success of a manufacturing firm?
By reducing waste and increasing productivity
Which of the following is NOT a benefit of economies of scale for a manufacturing firm?
Higher profit margins
What is one reason why manufacturing is considered a crucial sector for the economy?
For its role in driving innovation, industrial growth, and job creation
How do economies of scale impact a firm's cost structure?
By decreasing average costs per unit as production quantities increase
What aspect of the manufacturing industry contributes to its reputation as the 'engine of the economy'?
Its capability to drive job creation and economic growth
Learn about the cost advantages that manufacturers experience by increasing their level of output. Explore the inverse relationship between per-unit fixed cost and quantity produced, and how economies of scale lead to lower costs.
Make Your Own Quizzes and Flashcards
Convert your notes into interactive study material.
Get started for free
