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

Related MCQs

• Economies of scale exist if:
• Economies of scale
• Which of the following statements best describes the general form of a production function: (i) It is a purely technological relationship between quantities of input and quantities of output. (ii) It represents the technology of an organisation, sector of an economy. (iii) Prices of inputs or of the output do not enter into the production function. (iv) It is a flow concept describing the transformation of inputs into output per unitof time.
• Suppose that a firm produces 200,000 units a year and sells them all for Rs.10 each. The explicit costs of production are Rs.1,500,000 and the implicit costs of production are Rs. 300,000. The firm has an accounting profit of:
• With fixed costs of Rs. 400, a firm has average total costs of Rs. 3 and average variable costs of Rs. 2.50. Its output is:
• The reason the marginal cost curve eventually increases as output increases for the typical firm is because:
• Which cost is to be incurred by a firm even if output is zero:
• If you know that with 8 units of output, average fixed cost is Rs. 12.50 and average variable cost is Rs. 81.25, then total cost at this output level is:
• Which of the following statements describes increasing returns to scale:
• ______is primarily done by observing or testing on real-life data or analysing the pattern of some specific events in order to identify the nature or the class of trend that specific phenomenon maintains.