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When_____ exist, the doubling of all inputs will result in more than doubling output, which means _________.

A- economies of scale; a smaller factory can produce at a lower average cost than a larger company.

B- economies of scale; a larger factory can produce at a lower average cost than a smaller company

C- labor inputs; economies-of-scale curve U-shpaed

D- lower labor inputs; the larger scale of production leads to higher costs

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Darryn D'Souza
Darryn D'SouzaLv10
28 Sep 2019

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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.

Firms experience economies of scale for several reasons. What is one such reason? A firm might experience economies of scale because

A. a firm's technology may make it impossible to increase production without a larger proportional increase input usage.

B. managers begin to have difficulty coordinating the operation of the firm.

C. workers become more specialized, enabling them to become more productive, as output expands.

D. as a firm expands it may have to borrow money at a higher interest rate.

E. large firms may be required to purchase inputs at higher costs than smaller competitors.

For which of the following​ reason(s) may firms experience economies of​ scale?

A) Firm's production may increase with a smaller proportional increase in at least one input.

B) Large firms may be able to purchase inputs at lower costs than smaller competitors; they can also borrow money at a lower interest rate.

C) Both managers and workers may become more specialized and hence more productive as output expands.
 
D) All of the above.

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