IGCSE Business Economies of Scale

Diseconomies of Scale result in a lower per unit production cost over the long run

• True

• False

Machinery is likely to be efficient. what economies it indicate?

• Financial Economies
• Buying Economies
• Technical Economies
• Managerial Economies

Economies of scale are the reduction in costs of production achieved through increased output.

• True
• False

If a firm doubles its use of inputs and finds that output increases by 50%, then it has experienced

• Growth
• Economies of scale
• Diseconomies of scale
• Evolution

Technological economies of scale can only be feasible for a business if

• Banks lend money for the purchase of highly expensive technology
• Capital equipment is capable of producing mass units of a product in a short time
  
• There is an economic boom
• There is sufficient market demand for the product

The output range in region "c" is associated with......

• Economies of Scale
• Internal economies of Scale
• Internal diseconomies of Scale
• Diseconomies of Scale

A _____ is anywhere buyers and sellers meet to buy and sell goods and services.

• Store

• Workplace

• Restaurant

• Market

The difference between the income earned and the expenses incurred by a business during a specific period of time is called _____.

• Sales

• Profit

• Expenses

• Costs

Which of the following is not a cause of internal diseconomies of scale?

• Poor communication between different departments
• Lack of staff morale and motivation
  
• Less control, direction and coordination of human resources
• Late deliveries due to congestion in busy locations

Joint ventures, mergers and acquisitions are all examples of what type of growth?

• Internal
• External
• Organic
• Branding