Economies of scale are indicated by:

1. the rising segment of the average variable cost curve.

2. the declining segment of the long-run average total cost curve.

3. the difference between total revenue and total cost.

4. a rising marginal cost curve

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Sonal BahlLv10

6 Oct 2020

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Related questions

36) A firm encountering economies of scale over some range of output will have a:

a) rising long-run average cost curve.

b) falling long-run average cost curve.

c) constant long-run average cost curve.

d) rising, then falling, then rising long-run average cost curve.

37) When a firm doubles its inputs and finds that its output has more than doubled, this is known as:

a) economies of scale.

b) constant returns to scale.

c) diseconomies of scale.

d) a violation of the law of diminishing returns.

38) The larger the diameter of a natural gas pipeline, the lower is the average total cost of transmitting 1,000 cubic feet of gas 1,000 miles. This is an example of:

a) economies of scale.

b) normative economies.

c) diminishing marginal returns.

d) an increasing marginal product of labor.

39) If all resources used in the production of a product are increased by 20 percent and output increases by 20 percent, then there must be:

a) economies of scale.

b) constant returns to scale.

c) diseconomies of scale.

d) increasing the average total costs.

40) Economies and diseconomies of scale explain why the:

a) short-run average fixed cost curve declines so long as output increases.

b) marginal cost curve must intersect the minimum point of the firm's average total cost curve.

c) long-run average total cost curve is typically U-shaped.

d) short-run average variable cost curve is U-shaped.

jadeshark411

Diseconomies of scale mean that:

a. a firm's long-run average total cost curve is declining.

b. a firm's long-run average total cost curve is rising.

c. the advantages of specialization are being more fully realized.

d. a given increase in inputs results in a more-than-proportionate increase in output.

lemonscorpion281

in the short run the individual competitive firm's supply curve is that segment of the

Average variable cost curve lying below the marginal cost curve
Marginal cost curve lying above the average variable cost curve
Marginal revenue curve lying below the demand curve
Marginal cost curve lying between the average total cost curve and the average variable cost curves