12  When a shoe manufacturer doubles all factors of production output more than doubles. Which economic concept does this illustrate?1 pointA diseconomies of scaleB economies of scaleC increasing profitsD opportunity cost

1. If a firm's output more than doubles when all inputs are doubled, production is said to occur under conditions of A. intra-industry equilibrium. B. decreasing returns to scale. C. imperfect competition. D. increasing returns to scale. E. constant returns to scale. 2. External economies of scale will ________ average cost when output is ________ by ______. A. reduce; increased; the industry B. reduce; increased; a firm C. increase; increased; a firm D. increase; increased; the industry E. reduce; reduce; the industry 3. The existence of internal economies of scale A. may be associated with a perfectly competitive industry. B. is associated only with sophisticated products such as aircraft. C. cannot be associated with a perfectly competitive industry. D. cannot form the basis for international trade. E. focuses more on the industry than individual firms 4. When there are external economies of scale, an increase in the size of the market should A. not affect the number of firms but will lower the price per unit. B. decrease the number of firms and lower the price per unit. C. decrease the number of firms and raise the price per unit. D. increase the number of firms and raise the price per unit. E. increase the number of firms and lower the price per unit. 5. If an industry is subject to external economies of scale but not internal economies of scale, the average cost per unit A. rises as the industry and the average firm grows larger. B. remains constant over a broad range of output. C. falls as the industry and the average firm grows larger. D. falls as the industry grows larger and rises as the average firm grows larger. E. rises as the industry grows larger and falls as the average firm grows larger. 6. The Internet has made transactions between businesses (B2B trading) fast and easy. Any business in any location can access specialized knowledge, labor, and materials. It is likely that these virtual economic communities will result in A. consolidation of industries into a small number of powerful firms. B. internal economies of scale. C. suppression of innovations and collusive behavior, driving up prices. D. government intervention and regulation. E. external economies of scale 7. If two countries begin trading with one another, and both produce a product subject to external economies of scale, then the country with the ________ rate of production will ________ production until it controls ________ of the market. A. higher; increase; 100% B. higher; increase; 50% C. lower; increase; 100% D. lower; increase; 50% E. higher; decrease; 0% 8. A learning curve relates ________ to ________ and is a case of ________ returns. A. unit cost; cumulative production; dynamic increasing B. output per time period; long-run marginal cost; dynamic decreasing C. output per time period; long-run marginal cost; dynamic increasing D. unit cost; cumulative production; dynamic decreasing E. labor producti

When all resources used in the production of a product are increased by 20 percent, output increases by 20 percent. It implies __________________.a.economies of scale.b.diseconomies of scale.c.constant returns to scaled.increasing average total costs

What best describes diseconomies of scale?Cost advantages that larger firms often enjoySavings in costs achieved by increasing the scale of productionThe rising average cost per unit that occurs when a company increases its output beyond a certain levelThe potential profit increase due to economies of scale

1 In which one of these situations would the price mechanism allocate moreresources to the production of a particular good?A An increase in VATB A decrease in the price of a substituteC A shortage of raw materialsD Introduction of more efficient production methods (1 mark)2 In which one of these situations would the price mechanism allocate fewerresources to the production of a particular good?A A successful advertising campaignB Increasing consumer wealthC An increase in the price of a complementD A government subsidy on the good (1 mark)3 Explain the ‘rationing’ function of price. (5 marks)4 Explain the ‘incentive’ function of price. (5 marks)5 Explain the ‘signalling’ function of price. (4 marks)6 With the help of a diagram, explain how the price mechanism resolves thebasic economic problem. (9 marks)

Identify the "All you can eat economics" economic concept: The savings in production cost when production is increasedGroup of answer choicesEconomy of scaleFlat-rate pricingPrice discrimination