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

Related MCQs

• Economies of scale exist if:
• If a firm’s average cost is Rs.32 at 6 units of output and Rs.34 at 7 unit, which one among the following is the marginal cost of producing the 7th unit
• 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:
• When a firm doubles its inputs and finds that its output has more than doubled, this is known as:
• 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:
• In which of the following situations will an increase in the money supply have no effect upon output?
• Entrepreneurs will have no tendency to expand or contract output and employment when
• Under increasing returns to scale, which of the following is the nature of the long run average cost curve?