Long Run Costs (Grade 11 NSC Matric Economics): Quizzes
📚Quizzes
Practise the questions
10 questions from this quiz
ShowHide
Practise the questions
10 questions from this quiz
What defines the long run in economics?
What defines the long run in economics?
All inputs become variable
What is the key distinction between short run and long run?
What is the key distinction between short run and long run?
Ability to change all factors of production
What does the LRAC curve show?
What does the LRAC curve show?
How avg costs change when all inputs vary
Why is the LRAC curve called an 'envelope curve'?
Why is the LRAC curve called an 'envelope curve'?
It envelopes all SRAC curves
What are constant returns to scale?
What are constant returns to scale?
% increase in inputs = % increase output
What happens with increasing returns to scale?
What happens with increasing returns to scale?
Output grows faster than input increase
What do decreasing returns to scale suggest?
What do decreasing returns to scale suggest?
Inefficiencies in large-scale production
A firm doubles inputs and output rises 150%. What type of returns is this?
A firm doubles inputs and output rises 150%. What type of returns is this?
Increasing returns to scale
Which factor helps create economies of scale?
Which factor helps create economies of scale?
Bulk buying of raw materials
What is an advantage of achieving economies of scale?
What is an advantage of achieving economies of scale?
Average cost of production decreases