ECO100 Knowledge Check 3 Latest 2018

Question Question 1 "Constant returns to scale" describes a situation where: A. expanding all inputs does not change the average cost of production. B. a larger-scale firm can produce at a lower cost than a smaller-scale firm. C. expanding all inputs changes the average cost of production. D. the quantity of output rises and the average cost of production falls. Question 2 In microeconomics, which of the following is synonymous with economies of scale? diminishing marginal returns increasing ...

Question Question 1 "Constant returns to scale" describes a situation where: A. expanding all inputs does not change the average cost of production. B. a larger-scale firm can produce at a lower cost than a smaller-scale firm. C. expanding all inputs changes the average cost of production. D. the quantity of output rises and the average cost of production falls. Question 2 In microeconomics, which of the following is synonymous with economies of scale? diminishing marginal returns increasing ...

Question Question 1 "Constant returns to scale" describes a situation where: A. expanding all inputs does not change the average cost of production. B. a larger-scale firm can produce at a lower cost than a smaller-scale firm. C. expanding all inputs changes the average cost of production. D. the quantity of output rises and the average cost of production falls. Question 2 In microeconomics, which of the following is synonymous with economies of scale? diminishing marginal returns increasing ...