1. At what point on an average cost curve are firms productively efficient?
- At the lowest point of the U shape
- At the lowest point of the straight line graph
- At the highest point of the stright line graph
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2. What are diseconomies of scale?
- Rising average costs due to firms downgrading in size
- Rising average costs due to the expansion and growth of a firm
- Falling average costs due to the expansion and growth of a firm
3. What are economies of scale?
- More demand with larger firm
- Lower average costs resulting from the expansion of a firm
- Higher average costs resulting from the expansion of a firm
4. What do financial economies of scale mean?
- Due to the growth of a firm, banks and other lenders charge less interest and negotiate on better terms than with smaller risker firms
- As the firm expands investment increases
- As the firm gets smaller, financial issues arise
5. What is managerial economies scale linked to?
- Linked to the division and specialisation of labour
- Linked to the trade union
- Linked to external economies of scale