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1A firm that increases its quantity produced without any change in per- unit cost

is experiencing:

A economies of scale.

B diseconomies of scale.

C constant returns to scale.

2、A company is experiencing economies of scale when:

A cost per unit increases as output increases.

B it is operating at a point on the LRAC curve where the slope is negative.

C It is operating beyond the minimum point on the long- run average total costcurve.


【答案以及解析】

1、C is correct. Output increases in the same proportion as input increases occur at constant returns to scale.

2、B is correct. Economies of scale occur if, as the firm increases output, cost per unit of production falls. Graphically, this definition translates into a long- run average cost curve (LRAC) with a negative slope.

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