Podcast
Play an AI-generated podcast conversation about this lesson
Download our mobile app to listen on the go
Get App
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?
Signup and view all the answers
What do economies of scale lead to for a company?
What do economies of scale lead to for a company?
Signup and view all the answers
What do external economies of scale refer to?
What do external economies of scale refer to?
Signup and view all the answers
When does a firm experience diseconomies of scale?
When does a firm experience diseconomies of scale?
Signup and view all the answers
What do internal economies of scale benefit from?
What do internal economies of scale benefit from?
Signup and view all the answers
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?
Signup and view all the answers
What are the components of economies of scale in terms of?
What are the components of economies of scale in terms of?
Signup and view all the answers
Flashcards are hidden until you start studying
