Economies of Scale Quiz
6 Questions
1 Views

Choose a study mode

Play Quiz
Study Flashcards
Spaced Repetition
Chat to lesson

Podcast

Play an AI-generated podcast conversation about this lesson

Questions and Answers

Which of the following best defines economies of scale in a business?

  • The fluctuation in production costs based on market demand
  • The increase in production costs as the scale of production decreases
  • The constant production costs regardless of the scale of production
  • The decrease in production costs as the scale of production increases (correct)

    • What is meant by diseconomies of scale in a business?

  • The constant production costs regardless of the scale of production
  • The decrease in production costs as the scale of production increases
  • The increase in production costs as the scale of production decreases (correct)
  • The fluctuation in production costs based on market demand

    • What are internal economies of scale in a business?

  • The cost disadvantages faced by a business due to its size and scale of operation
  • The cost advantages gained by a business due to its size and scale of operation (correct)
  • The cost advantages gained by a business due to external factors such as industry growth
  • The cost disadvantages faced by a business due to external factors such as industry growth

    • Which of the following best describes economies of scale in a business?

    <p>B. The decrease in production costs as the scale of production increases.</p> Signup and view all the answers

    What are diseconomies of scale in a business?

    <p>A. The increase in production costs as the scale of production decreases.</p> Signup and view all the answers

    What is the difference between internal and external economies of scale in a business?

    <p>A. Internal economies of scale refer to cost reductions within a specific business, while external economies of scale refer to cost reductions in the industry as a whole.</p> Signup and view all the answers

    More Like This

    Use Quizgecko on...
    Browser
    Open
    Browser
    Browser