BOP L7

What do economies of scale refer to?

• Cost advantages that a company can achieve as its production increases

• Cost disadvantages that a company faces as its production decreases

• The increase in costs as a company grows

• The reduction in quality as a company expands

What are the two types of economies of scale mentioned in the diagram?

• Internal Economies and External Economies

• Internal Economies and External Disadvantages

• Internal Disadvantages and External Economies

• Internal Disadvantages and External Disadvantages

What are the two main types of Economies of Scale?

• Managerial and Financial

• Internal and External

• Technical and Marketing

• Resource & Development and Economies of Concentration

Which of the following is NOT an example of Internal Economies of Scale?

• Managerial

• Financial

• Technical

• Economies of Specialization

Which of the following is an example of External Economies of Scale?

• Managerial

• Financial

• Economies of Concentration

• Technical

What does Total Revenue (TR) refer to?

• The overall income a company generates from selling its products or services.

• The total cost of producing goods.

• The profit made after all expenses are deducted.

• The number of units sold.

How is Total Revenue (TR) calculated?

• Price per Unit x Quantity Sold

• Total Cost x Quantity Sold

• Price per Unit + Quantity Sold

• Total Cost + Quantity Sold

If a company sells 100 units of a product at $10 each, what would the Total Revenue (TR) be?

• $1000

• $100

• $10

• $10000

What is Marginal Revenue?

• The total revenue earned from selling all units of a product.

• The additional revenue earned from selling one more unit of a product.

• The total cost of producing all units of a product.

• The additional cost of producing one more unit of a product.

How is Marginal Revenue (MR) calculated?

• MR = Total Revenue / Quantity Sold

• MR = Total Cost / Quantity Sold

• MR = Change in Total Revenue / Change in Quantity Sold

• MR = Change in Total Cost / Change in Quantity Sold