10 Questions
What do internal economies of scale refer to?
Benefits to the firm originating from the organization itself
When does a firm experience economies of scale?
When long-run average costs are falling
What are external economies of scale?
Benefits given to the firm from outside the firm
What is the optimum output level corresponding to on the long-run average costs curve?
Point B
What do economies of scale lead to for a company?
Increased overall efficiency and competitiveness
What do external economies of scale refer to?
Benefits to the firm originating from neighboring firms
When does a firm experience diseconomies of scale?
When long-run average costs are rising
What do internal economies of scale benefit from?
Benefits from the organization itself
What is the optimum output level on the long-run average costs curve?
The level of output that corresponds to the lowest point on the curve
What are the components of economies of scale in terms of?
Technical, marketing, financial, managerial, and risk-bearing aspects
Test your knowledge of economies and diseconomies of scale with this quiz. Learn about the definitions of "economies of scale," "internal economies," and "external economies," and understand their impact on long-run average costs. Explore the components of economies of scale, including technical, marketing, financial, managerial, and risk-bearing aspects. Sharpen your understanding of these crucial economic concepts.
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