Economies of scale correct answers If, when a firm double all its inputs, its average cost of production decreases, then production displays
A - diminishing returns
B - economies of scale
C - diseconomies of scale
D - declining fixed costs
The lowest average cost of producing every level o...
Econ 528 Final || A+ GRADED
Economies of scale correct answers If, when a firm double all its inputs, its average cost of
production decreases, then production displays
A - diminishing returns
B - economies of scale
C - diseconomies of scale
D - declining fixed costs
The lowest average cost of producing every level of output in the long run correct answers
The long-run average cost curve shows
A - the lowest average cost of producing every level of output in the long run
B - where the most profitable level of output occurs
C - the average cost of producing where diminishing returns are not present
D - the plant size of scale that the firm should build
An increase in the output level will increase profit correct answers All of the following
statements are true of the minimum efficient scale except one. Which one?
A - all possible economies of scale have been exhausted
B - the short-run average total cost curve's minimum point is equal to the long run average
cost curve's minimum point
C - an increase in the scale of operation will encounter diseconomies of scale.
D - an increase in the output level will increase profit
The firm has achieved the lowest possible average cost of production correct answers At the
minimum efficient scale
A - all possible economies of scale have not been exhausted
B - the firm has achieved the lowest possible average cost of production
C - any increases in the scale of operation will encounter further economies of scale
D - marginal cost is at its minimum
It is upward-sloping correct answers The President of Toyota's Georgetown plant was quoted
as saying, "Demand for high volumes saps your energy. Over a period of time, it eroded our
focus [and] thinned out the expertise and knowledge we painstakingly built up over the
years." Based on this quote, what must be true of the plant's average cost of production
curve?
A - it is upward-sloping
B - it is downward-sloping
C - it is a ray from the origin
D - it is U-shaped
Produces more than one product correct answers Economies of scope refers to the decrease in
average total cost that can occur when a firm
A - produces more than one product
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through EFT, credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying this summary from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller ProPerfomer. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy this summary for R167,54. You're not tied to anything after your purchase.
