If a firm is not operating at the output necessary to achieve all scale economies, it has not achieved its ?

Related Mcqs:

1. Suppose Handel’s Ice Cream experiences economies of scale up to a certain point and diseconomies of scale beyond that point. Its long-run average cost curve is most likely to be ?

   A. downward sloping to the right
   B. U-shaped
   C. Horizontal
   D. upward sloping to the right

2. An industry that realizes such large economies of scale in producing its product that single-firm production of that good or service is most efficient is called ?

   A. a fixed cost monopoly
   B. a natural monopoly
   C. a government franchise monopoly
   D. a economies of scale monopoly

3. Which scholar argues the following Plantations have no significant advantage over peasants [for] crops for which centralized processing and marketing are not necessary Cocoa and coconuts are typical examples of a lack of large scale economies Peasants can grow and process these crops in small lots with no large capital requirement beyond small indigenous tools and facilities ?

   A. Yujiro Hayami
   B. Raanan Weitz
   C. Hans Singer
   D. Tim Dyson

4. A case when internal economies of scale bring about a continuously falling average cost curve that makes having more than one firm in an industry inefficient is illustrative of ?

   A. a natural monopoly
   B. an LDC’s limit of one firm to an industry
   C. an individual firm facing a horizontal (perfectly elastic) demand curve in LDCs
   D. The existence of oligopoly

5. There is an arrangement which allows a firm to use research from another firm at no cost in exchange for executing all of its trades with the firm that provides the research. What this arrangement is called?

   A. Mutual arrangement
   B. Quid Pro quo
   C. Bilateral arrangement
   D. common interest

6. If a competitive firm is producing a level of output where marginal revenue exceeds marginal cost the firm could increase profit if it ?

   A. decreased production
   B. maintained production at the current level
   C. temporarily shut down.
   D. increased production

7. If a competitive firm doubles its output its total revenue ?

   A. doubles.
   B. more than double
   C. less than doubles.
   D. cannot be determined because the price of the good may rise or fall

8. Economies of Scale meaning ?

   A. Cost on all products
   B. Reduced per unit Cost 
   C. Higher per unit Cost
   D. None of these

   Submitted by: Adnan Rai

9. When internal economies of scale occur ?

   A. Total costs fall
   B. Marginal costs increase
   C. Average costs fall
   D. Revenue falls

10. Output fell sharply in the transition economies because ?

    A. banks were unable to function
    B. there was little corporate control
    C. vital infrastructure was missing
    D. All of the above