Business Quiz: Economies Of Scale

8 Questions | Total Attempts: 424

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Economy Quizzes & Trivia

One of the sub-topic of business growth


Questions and Answers
  • 1. 
    Economies of scale is also known as...
    • A. 

      Benefiting scales.

    • B. 

      Returns of scale

    • C. 

      EOS

  • 2. 
    What is economies of scale?
    • A. 

      The lower average cost of production

    • B. 

      Extra profit to gain

    • C. 

      Benefits of a business

  • 3. 
    Which economies of scale involves specialization of departments?
    • A. 

      Specialization economies

    • B. 

      Managerial economies

    • C. 

      Departmental economies

  • 4. 
    Monopsony economy is...
    • A. 

      Small business can get discounts from bulk purchase

    • B. 

      Medium sized business can get discounts from bulk purchase

    • C. 

      Large sized business can get discounts from bulk purchase

  • 5. 
    Who benefits from risk-bearing economies?
    • A. 

      Conglomerate businesses

    • B. 

      Product development businesses

    • C. 

      Market development businesses

  • 6. 
    What can businesses benefit from financial economies?
    • A. 

      High sum loan/Low interest rate

    • B. 

      Special services from banks

    • C. 

      Extension of deadline to pay back the bank

  • 7. 
    Diseconomies of scale can occur when a company becomes too big, lowering its production.
    • A. 

      True

    • B. 

      False

  • 8. 
    Economies of scale occur when a company’s production stays at a constant rate without a curve, leading to lower fixed costs.
    • A. 

      True

    • B. 

      False