Economies and Diseconomies of Scale Quiz

A UAE-based oil company expands its production, reducing the cost per barrel of oil. This is an example of:

• Economies of scale

• Diseconomies of scale

A Dubai-based supermarket increases its number of stores, leading to lower average costs per store. This is an example of:

• Diseconomies of scale

• Economies of scale

A large UAE-based construction firm expands its operations but begins facing management challenges and rising costs. This is an example of:

• Economies of scale

• Diseconomies of scale

A car manufacturing plant in Sharjah installs advanced machinery, increasing output while lowering costs per unit. This represents:

• Economies of scale

• Diseconomies of scale

A UAE-based logistics company builds a larger warehouse, allowing it to store more goods and reduce per-unit storage costs. This is an example of:

• Economies of scale

• Diseconomies of scale

A UAE-based airline expands its fleet, reducing the cost per flight by increasing the number of passengers. This is an example of:

• Economies of scale

• Diseconomies of scale

A large restaurant chain in Dubai increases its size but starts facing challenges in communication, resulting in higher average costs. This is likely:

• Economies of scale

• Diseconomies of scale

A tech startup in Dubai increases production of smartphones, lowering the average cost per unit through bulk purchases. This is an example of:

• Economies of scale

• Diseconomies of scale

A UAE hotel chain expands from 5 to 50 hotels, reducing its per-room cost. This is an example of:

• Diseconomies of scale

• Economies of scale

A UAE-based shipping company consolidates its operations, which reduces transportation costs per unit. This is an example of:

• Economies of scale

• Diseconomies of scale