Economies And Diseconomies Of Scale

10 Questions | Total Attempts: 21

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Economies And Diseconomies Of Scale


Questions and Answers
  • 1. 
    Economics  of scale can be defined as 
    • A. 

      The cost of production 

    • B. 

      The price paid to other businesses  for raw materials 

    • C. 

      The money lost as a business  increases the levels of production 

    • D. 

      The money saved as a business  increases their production 

  • 2. 
    All of the following  are internal economies  of scale EXCEPT 
    • A. 

      Managerial 

    • B. 

      Productivity 

    • C. 

      Financial 

    • D. 

      Technical 

  • 3. 
    How many external economies  of scale are there
    • A. 

      1

    • B. 

      2

    • C. 

      3

    • D. 

      4

  • 4. 
    R&D stands for 
    • A. 

      Ride and die

    • B. 

      Research and Development 

    • C. 

      Reap and dump

    • D. 

      Research and developing 

  • 5. 
    The use of waste materials means;
    • A. 

      What can be made from these waste materials 

    • B. 

      How they are disposed

    • C. 

      How much money you can make from them 

    • D. 

      How they can be reused by another business to make money 

  • 6. 
    Diseconomies of scale is known as 
    • A. 

      How badly a business fails

    • B. 

      The amount of money lost when a business increases production 

    • C. 

      The amount of money lost when a business decreases production

    • D. 

      How much money is gained  when production increases

  • 7. 
    Which of the following  is an internal diseconomies of scale
    • A. 

      Technical 

    • B. 

      Supervisors

    • C. 

      Managerial 

    • D. 

      Welfare

  • 8. 
    Which of the following  is an external diseconomies of scale 
    • A. 

      Cost of raw materials 

    • B. 

      Agglomeration 

    • C. 

      External Capacity 

    • D. 

      Improved infrastructure 

  • 9. 
    Logistics Cost means 
    • A. 

      The cost of raw materials increases 

    • B. 

      The cost of transportation increases 

    • C. 

      The cost of raw materials decreases 

    • D. 

      The cost of transportation decreases

  • 10. 
    Internal economies / diseconomies of scale are
    • A. 

      Things that a business can control 

    • B. 

      Things that a business  can sometimes control 

    • C. 

      Things that a business  cannot control 

    • D. 

      Things that a business  can never control 

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