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If a firm can double output by doubling the size of its operation, it is subject to a.e

  If a firm can double output by doubling the size of its operation, it is subject to

a.economies of scale

b.diseconomies of scale

c.constant returns to scale

d.increasing returns to scale

e.diminishing returns to scale

62.              The primary source of scale diseconomies appears to be

a.a firm’s inability to acquire quality resources

b.too little demand for the firm’s product

c.consumers who resist dealing with large firms

d.division of labor

e.the organizational difficulties of managing an ever larger enterprise

63.              The decreasing portion of a firm’s long-run average cost curve is attributable to

a.diminishing returns to scale

b.increasing marginal cost

c.economies of scale

d.diseconomies of scale

e.constant returns to scale

64.              Starting a fishing business

a.is safe because the price of fish is stable

b.requires little prior knowledge

c.involves no significant entry costs

d.is a risky way to make a living

e.does not involve opportunity costs

65.              A local bagel company plans to keep and maintain its bagel factory, which is estimated to
                            last 25 years. All cost decisions it makes during the 25-year period

a.are short-run decisions

b.are long-run decisions

c.involve only maintenance of the factory

d.are zero, since the cost decisions were made at the beginning

e.involve both fixed and variable cost

66.              Fixed cost is sometimes called

a.total cost

b.sunk cost

c.variable cost

d.marginal cost

e.average total cost

67.              Which of the following is an example of a fixed cost for a fishing company?

a.the cost of hiring a fishing crew

b.the fuel costs of running the boat

c.the monthly loan payment on the boat

d.the supply of nets, hooks, and fishing lines

e.the bait

68.              Which of the following is an example of a variable cost for a bakery?

a.monthly mortgage payment for the building

b.monthly loan payment for ovens

c.fire insurance payments

d.flour and other ingredients for baking

e.property taxes

69.              Suppose a publisher faces the following costs of producing 10,000 newspapers each
                            month: $5,500 cost of labor; $2,200 monthly mortgage payment; $250 cost of electricity
                            to run the printing presses; $800 for ink and paper; and $200 in city property taxes (based
                            on the value of the building and land). Its total variable costs are

a.$8,950

b.$8,750

c.$6,550

d.$6,300

e.$5,500

70.              Changes in labor productivity, changes in the quality of labor, and changes in the price of
                            labor are three factors that explain why labor costs eventually

a.increase at a decreasing rate

b.increase at an increasing rate

c.decrease at an increasing rate

d.decrease at a decreasing rate

e.become constant

Dec 09 2019 Read more Less More

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