30 Questions
Which factors of production are adjustable in the long run?
Both fixed and variable factors
What do long-run costs represent?
Costs incurred when all inputs are adjusted to reach a desired level of output
What do long-run average costs (LRAC) indicate?
The lowest cost per unit of output achievable when all inputs can be adjusted
What are economies of scale?
When the average cost of producing a good or service decreases as the quantity produced increases
How can technological advancements affect production costs?
They decrease production costs
How can market competition impact production costs?
It decreases production costs
What do economies of scale result in?
Lower production costs
What do technological advancements lead to in terms of production costs?
Lower production costs
What is the relationship between market competition and production costs?
Market competition decreases production costs
What do long-run average costs (LRAC) indicate about production levels?
The lowest cost per unit of production achievable when all inputs can be adjusted
Which of the following is true about long-run costs?
Long-run costs are incurred when all inputs are adjusted to reach a desired level of output.
What do long-run average costs (LRAC) indicate?
The lowest cost per unit of output achievable when all inputs can be adjusted.
What is the relationship between production and costs in the long run?
Long-run costs are incurred when all inputs are adjusted to reach a desired level of output.
What can economies of scale result in?
Decreased average cost of producing a good or service as the quantity produced increases.
How can technological advancements affect production costs?
Technological advancements can lead to lower production costs by increasing productivity or reducing the need for labor.
What impact can market competition have on production costs?
Market competition can drive down production costs by forcing firms to be more efficient and innovative.
What do economies of scale occur as?
The average cost of producing a good or service decreases as the quantity produced increases.
What do technological advancements lead to in terms of production costs?
Technological advancements can lead to lower production costs by increasing productivity or reducing the need for labor.
What is the impact of market competition on production costs?
Market competition can drive down production costs by forcing firms to be more efficient and innovative.
What do long-run average costs (LRAC) indicate about production levels?
The efficiency of any given production level within the long-run production possibilities curve.
Which of the following is true about long-run costs?
Long-run costs are incurred when all inputs are adjusted to reach a desired level of output.
What do long-run average costs (LRAC) indicate about production levels?
The efficiency of any given production level within the long-run production possibilities curve.
What impact can market competition have on production costs?
Market competition can drive down production costs by forcing firms to be more efficient and innovative.
What do economies of scale occur as?
The average cost of producing a good or service decreases as the quantity produced increases.
What do technological advancements lead to in terms of production costs?
Technological advancements can lead to lower production costs by increasing productivity or reducing the need for labor.
What can economies of scale result in?
Lower production costs and increased efficiency.
Which factors of production are adjustable in the long run?
All factors of production.
What is the relationship between production and costs in the long run?
Long-run costs are incurred when all inputs are adjusted to reach a desired level of output.
What do long-run average costs (LRAC) indicate?
The lowest cost per unit of output achievable when all inputs can be adjusted.
What is the impact of market competition on production costs?
Market competition can drive down production costs by forcing firms to be more efficient and innovative.
Test your knowledge on factors that affect price elasticity of demand, including the impact of necessity vs. luxury goods and the availability of substitutes.
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