micro drills10 questions
Cost Curves and Long-Run Costs — Practice Set
Connect short-run cost curves to long-run planning: why LRAC slopes, what minimum efficient scale means, and how to read cost diagrams.
Q1.
The long-run average cost curve is U-shaped because of:
Multiple choice · Intermediate
Q2.
Minimum efficient scale is the output level where:
Multiple choice · Intermediate
Q3.
If a firm doubles all inputs and output more than doubles, the firm experiences:
Multiple choice · Foundations
Q4.
A natural monopoly typically arises when:
Multiple choice · Intermediate
Q5.
In the short run, the MC curve is U-shaped due to:
Multiple choice · Intermediate
Q6.
Which curve does NOT typically have a U shape in the short run?
Multiple choice · Intermediate
Q7.
If LRAC is falling as a firm expands, the firm should expect that:
Multiple choice · Foundations
Q8.
Economies of scope exist when:
Multiple choice · Advanced
Q9.
A firm's short-run ATC curve is tangent to its LRAC curve at:
Multiple choice · Advanced
Q10.
Diseconomies of scale most likely arise from:
Multiple choice · Intermediate