The existence of both economies of scale and diseconomies of
scale would have what effect on the LRAC curve?
It would make it upward-sloping.
It would make it downward-sloping.
It would give it an inverse U shape.
It would give it a U shape.
It would make it horizontal.
How would you describe the significance of Economies of
Scale and why they are relevant to direct and indirect cost and to
management in general?
What does this provide for a organization?
1. What are economies of scale? How do economies and
diseconomies of scale influence the shape of the long run cost
curves? How do economies of scale relate to indivisible setup
costs? What are diseconomies of scale and how do they arise?
A. Explain what external and internal economies of scale are and
why the supply curve in their case is shaped as “forward-falling”.
B. What may cause one country to have an initial advantage from
having a lower price? Discuss and give an example. C. Define what
increasing returns to scale represents in the context of a
production function. D. Can trade hurt a country when there are
external economies of scale? Give an example with a 2-country
2-good model and...
Why protect an industry could be beneficial or not beneficial in
internal economies of scale? What examples of industries observe
the phenomenon of internal economies of scale?