Question 1

Diseconomies of scale are associated with

Accepted Answer

A) Inefficiencies 
B) Cost reduction 
C) Improvement in technology 
D) Division of labor 
A) Inefficiencies 
B) Cost reduction 
C) Improvement in technology 
D) Division of labor

Question 2

The term "bottleneck" refers to

Accepted Answer

A) when increasing variable inputs must share a fixed amount of complementary input. 
B) "fixity" of some factor 
C) None of the above 
D) Both a and b 
A) when increasing variable inputs must share a fixed amount of complementary input. 
B) "fixity" of some factor 
C) None of the above 
D) Both a and b

Question 3

Microsoft found that instead of producing a dvd player and a gaming system separate,it is cheaper to incorporate dvd playing capabilities in their new version of the gaming system.Microsoft is taking advantage of

Accepted Answer

A) Economies of Scale 
B) Learning curve 
C) Economies of Scope 
D) Decreasing marginal costs 
A) Economies of Scale 
B) Learning curve 
C) Economies of Scope 
D) Decreasing marginal costs

Question 4

Decreasing returns to scale and diminishing returns differ in that

Accepted Answer

A) Diminishing returns is a long-run concept while decreasing returns to scale is a short-run concept. 
B) Diminishing returns is a short-run concept while decreasing returns to scale is a long-run concept. 
C) Diminishing returns is a both short and long-run concept while decreasing returns to scale is a short-run concept. 
D) Diminishing returns is a long-run concept while decreasing returns to scale is a short and long-run concept. 
A) Diminishing returns is a long-run concept while decreasing returns to scale is a short-run concept. 
B) Diminishing returns is a short-run concept while decreasing returns to scale is a long-run concept. 
C) Diminishing returns is a both short and long-run concept while decreasing returns to scale is a short-run concept. 
D) Diminishing returns is a long-run concept while decreasing returns to scale is a short and long-run concept.

Question 5

All of these are true,except

Accepted Answer

A) If production exhibits diseconomies of scope,firm should pair down production line to reduce costs. 
B) If production exhibits diseconomies of scope,firm should pair up production line to reduce costs. 
C) If production exhibits economies of scope,firm should pair up production line to reduce costs. 
D) If production exhibits economies of scope,firm should pair down production line to increase costs. 
A) If production exhibits diseconomies of scope,firm should pair down production line to reduce costs. 
B) If production exhibits diseconomies of scope,firm should pair up production line to reduce costs. 
C) If production exhibits economies of scope,firm should pair up production line to reduce costs. 
D) If production exhibits economies of scope,firm should pair down production line to increase costs.

Question 6

Average costs curves initially fall

Accepted Answer

A) Due to declining average fixed costs 
B) Due to rising average fixed costs 
C) Due to declining marginal costs 
D) Due to rising marginal costs 
A) Due to declining average fixed costs 
B) Due to rising average fixed costs 
C) Due to declining marginal costs 
D) Due to rising marginal costs

Question 7

If average product is decreasing,then marginal product

Accepted Answer

A) Must be increasing 
B) Must be greater than average product 
C) Must be less than average product 
D) None of the above 
A) Must be increasing 
B) Must be greater than average product 
C) Must be less than average product 
D) None of the above

Question 8

Once marginal cost rises above the average cost,

Accepted Answer

A) Average costs will increase 
B) Average costs will decrease 
C) Average costs will stay the same 
D) None of the above 
A) Average costs will increase 
B) Average costs will decrease 
C) Average costs will stay the same 
D) None of the above

Question 9

As table manufacturing company produces more tables,the average total cost of each table produced increases.This is because:

Accepted Answer

A) Total fixed costs are decreasing as more tables are produced 
B) There is economies of scale 
C) There is diseconomies of scale 
D) Total variable cost is decreasing as more clubs are produced. 
A) Total fixed costs are decreasing as more tables are produced 
B) There is economies of scale 
C) There is diseconomies of scale 
D) Total variable cost is decreasing as more clubs are produced.

Question 10

When a firm is experiencing increasing marginal costs,it implies

Accepted Answer

A) There are constant marginal productivity 
B) There are decreasing average costs 
C) There are decreasing marginal productivity 
D) There are increasing marginal productivity 
A) There are constant marginal productivity 
B) There are decreasing average costs 
C) There are decreasing marginal productivity 
D) There are increasing marginal productivity

Question 11

All the factors below are causes of diminishing marginal returns,except

Accepted Answer

A) Difficulty of monitoring and motivating larger workforces 
B) Increasing complexity of larger systems 
C) Division of Labor 
D) The "fixity' of some factor 
A) Difficulty of monitoring and motivating larger workforces 
B) Increasing complexity of larger systems 
C) Division of Labor 
D) The "fixity' of some factor

Diseconomies of scale are associated with

The term "bottleneck" refers to

Microsoft found that instead of producing a dvd player and a gaming system separate,it is cheaper to incorporate dvd playing capabilities in their new version of the gaming system.Microsoft is taking advantage of

Decreasing returns to scale and diminishing returns differ in that

All of these are true,except

Average costs curves initially fall

If average product is decreasing,then marginal product

Once marginal cost rises above the average cost,

As table manufacturing company produces more tables,the average total cost of each table produced increases.This is because:

When a firm is experiencing increasing marginal costs,it implies

All the factors below are causes of diminishing marginal returns,except

The One Lessor of Business

Benefits, Costs, and Decisions

Extent How Muchdecisions

Investment Decisions: Look Ahead and Reason Back

Simple Pricing

Understanding Markets and Industry Changes

Market Structure and Long-Run Equilibrium

Strategy: the Quest to Keep Profit From Eroding

Foreign Exchange, trade, and Bubbles

More Realistic and Complex Pricing

Direct Price Discrimination Indirect Price Discrimination

Strategic Games

Bargaining

Making Decisions With Uncertainty

Auctions

The Problem of Adverse Selection

The Problem of Moral Hazard

Getting Employees to Work in the Firms Best Interest

Getting Divisions to Work in the Firms Best Interest

Managing Vertical Relationships

Filters

Exam 7: Economies of Scale and Scope

Diseconomies of scale are associated with

The term "bottleneck" refers to

Microsoft found that instead of producing a dvd player and a gaming system separate,it is cheaper to incorporate dvd playing capabilities in their new version of the gaming system.Microsoft is taking advantage of

Decreasing returns to scale and diminishing returns differ in that

All of these are true,except

Average costs curves initially fall

If average product is decreasing,then marginal product

Once marginal cost rises above the average cost,

As table manufacturing company produces more tables,the average total cost of each table produced increases.This is because:

When a firm is experiencing increasing marginal costs,it implies

All the factors below are causes of diminishing marginal returns,except

The One Lessor of Business

Benefits, Costs, and Decisions

Extent How Muchdecisions

Investment Decisions: Look Ahead and Reason Back

Simple Pricing

Understanding Markets and Industry Changes

Market Structure and Long-Run Equilibrium

Strategy: the Quest to Keep Profit From Eroding

Foreign Exchange, trade, and Bubbles

More Realistic and Complex Pricing

Direct Price Discrimination Indirect Price Discrimination

Strategic Games

Bargaining

Making Decisions With Uncertainty

Auctions

The Problem of Adverse Selection

The Problem of Moral Hazard

Getting Employees to Work in the Firms Best Interest

Getting Divisions to Work in the Firms Best Interest

Managing Vertical Relationships

Filters