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Questions and Answers
What do internal economies of scale refer to?
What do internal economies of scale refer to?
- The level of output that corresponds to the optimum output
- Benefits given to the firm from outside the firm
- The cost advantages that accrue to a firm as the firm increases in size
- Benefits to the firm originating from the organization itself (correct)
When does a firm experience economies of scale?
When does a firm experience economies of scale?
- When the firm increases in size
- When long-run average costs are falling (correct)
- When long-run average costs are rising
- When the level of output corresponds to the optimum output
What are external economies of scale?
What are external economies of scale?
- Benefits to the firm originating from the organization itself
- The level of output that corresponds to the optimum output
- Benefits given to the firm from outside the firm (correct)
- The cost advantages that accrue to a firm as the firm increases in size
What is the optimum output level corresponding to on the long-run average costs curve?
What is the optimum output level corresponding to on the long-run average costs curve?
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What do economies of scale lead to for a company?
What do economies of scale lead to for a company?
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What do external economies of scale refer to?
What do external economies of scale refer to?
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When does a firm experience diseconomies of scale?
When does a firm experience diseconomies of scale?
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What do internal economies of scale benefit from?
What do internal economies of scale benefit from?
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What is the optimum output level on the long-run average costs curve?
What is the optimum output level on the long-run average costs curve?
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What are the components of economies of scale in terms of?
What are the components of economies of scale in terms of?
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