Costs (Edexcel A-Level Economics A): Quizzes
📚Quizzes
Practise the questions
10 questions from this quiz
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Practise the questions
10 questions from this quiz
What distinguishes the short run from the long run in production?
What distinguishes the short run from the long run in production?
Whether all factors can be varied
The law of diminishing marginal productivity applies in which time period?
The law of diminishing marginal productivity applies in which time period?
The short run only
What is the relationship between total costs and other cost measures?
What is the relationship between total costs and other cost measures?
TC = TFC + TVC
How does average fixed cost behave as output increases?
How does average fixed cost behave as output increases?
It continuously falls
Where does the marginal cost curve intersect the average total cost curve?
Where does the marginal cost curve intersect the average total cost curve?
At the minimum point of ATC
Which is NOT a source of economies of scale mentioned?
Which is NOT a source of economies of scale mentioned?
Government subsidies
What causes diseconomies of scale?
What causes diseconomies of scale?
Management & coordination difficulties
What is the minimum efficient scale (MES)?
What is the minimum efficient scale (MES)?
Output where LAC stops falling
External economies of scale arise from:
External economies of scale arise from:
Industry expansion
How does the LAC curve relate to SATC curves?
How does the LAC curve relate to SATC curves?
LAC forms an envelope touching each SATC