Economies and Diseconomies of Scale — Practice Set

Internal economies of scale arise from:

An example of an external economy of scale is:

Constant returns to scale means:

If a pizza chain finds that opening a second kitchen in the same city lowers average delivery cost per pizza, this is:

Learning by doing reduces long-run average cost over time. This is best described as:

Which is most likely to generate increasing returns to scale?

A firm experiences decreasing returns to scale. If it wants to double output, its costs will:

Network economies (e.g., a social platform becoming more valuable as users join) are a form of:

A conglomerate producing phones and tablets in shared facilities benefits from economies of:

In the very long run, persistent falling LRAC across the relevant market output suggests: