Econ 528 Final Exam – Questions With Verified
Solutions
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Terms in this set (79)
,Which of the following is a reason a.
why a firm would experience As the size of the firm increases it becomes more
diseconomies of scale? difficult to coordinate the operations of its
manufacturing plants.
a.
As the size of the firm increases it
becomes more difficult to coordinate
the operations of its manufacturing
plants.
b.
As the size of the firm increases, it
becomes more difficult to find
markets where it doesn't already have
operations.
c.
To finance an increase in the size of
its plant a firm must borrow more
money or sell more shares of stock.
d.
As the size of the firm increases, it
must operate in other countries
where differences in language,
customs and laws increase its
average costs.
The minimum efficient scale is a.
a. level of operation where long-run average costs are
level of operation where long-run lowest
average costs are lowest.
b.
the smallest output level where the
firm finally reaches productive
efficiency.
c.
the level of output where diminishing
returns have not set in yet.
d.
the plant size that yields the most
profit.
,Which of the following is not a reason d. As output increases, the managers can begin to
why firms experience economies of have difficulty coordinating the operations of their
scale? firms.
a.
Larger firms may be able to purchase
inputs at lower costs than smaller
competitors.
b.
Technology can make it possible to
increase production with a smaller
increase in at least one input.
c.
Workers and managers can become
more specialized, enabling them to
be more productive.
d.
As output increases, the managers
can begin to have difficulty
coordinating the operations of their
firms.
, Economies of scope exist between c.
book publishing and magazine the cost of publishing a magazine is lower for book
publishing if publishers than for other firms.
a.
the cost of publishing a book falls
over time as the publisher acquires
more experience.
b.
the cost of a publishing a book is not
subject to diminishing marginal
returns.
c.
the cost of publishing a magazine is
lower for book publishers than for
other firms.
d.
the cost of publishing a magazine is
lower for firms that publish many
magazines than for firms that publish
only one magazine.
Learning curves represent the c.
relationship between average variable cost and the cumulative number of
units produced
a.
average variable cost and the
number of units produced per time
period
b.
total cost and technology
c.
average variable cost and the
cumulative number of units produced
d.
average variable cost and the rate of
increase in technology
Solutions
Add to calendar
Play your way to mastery with fun games
Match Blocks Charms NEW
Terms in this set (79)
,Which of the following is a reason a.
why a firm would experience As the size of the firm increases it becomes more
diseconomies of scale? difficult to coordinate the operations of its
manufacturing plants.
a.
As the size of the firm increases it
becomes more difficult to coordinate
the operations of its manufacturing
plants.
b.
As the size of the firm increases, it
becomes more difficult to find
markets where it doesn't already have
operations.
c.
To finance an increase in the size of
its plant a firm must borrow more
money or sell more shares of stock.
d.
As the size of the firm increases, it
must operate in other countries
where differences in language,
customs and laws increase its
average costs.
The minimum efficient scale is a.
a. level of operation where long-run average costs are
level of operation where long-run lowest
average costs are lowest.
b.
the smallest output level where the
firm finally reaches productive
efficiency.
c.
the level of output where diminishing
returns have not set in yet.
d.
the plant size that yields the most
profit.
,Which of the following is not a reason d. As output increases, the managers can begin to
why firms experience economies of have difficulty coordinating the operations of their
scale? firms.
a.
Larger firms may be able to purchase
inputs at lower costs than smaller
competitors.
b.
Technology can make it possible to
increase production with a smaller
increase in at least one input.
c.
Workers and managers can become
more specialized, enabling them to
be more productive.
d.
As output increases, the managers
can begin to have difficulty
coordinating the operations of their
firms.
, Economies of scope exist between c.
book publishing and magazine the cost of publishing a magazine is lower for book
publishing if publishers than for other firms.
a.
the cost of publishing a book falls
over time as the publisher acquires
more experience.
b.
the cost of a publishing a book is not
subject to diminishing marginal
returns.
c.
the cost of publishing a magazine is
lower for book publishers than for
other firms.
d.
the cost of publishing a magazine is
lower for firms that publish many
magazines than for firms that publish
only one magazine.
Learning curves represent the c.
relationship between average variable cost and the cumulative number of
units produced
a.
average variable cost and the
number of units produced per time
period
b.
total cost and technology
c.
average variable cost and the
cumulative number of units produced
d.
average variable cost and the rate of
increase in technology
