Internal Economies Quiz

What are internal economies of scale?

• Cost savings and efficiency gains achieved by a firm by expanding its operations

• Cost savings and efficiency gains achieved by firms in an industry due to factors outside of the individual firm

• Cost savings and efficiency gains achieved by a firm through reducing its production

What is the main advantage of internal economies of scale for a firm?

• Increased market share

• Improved competitiveness

• Both a and b

• Kentucky fried chicken

What is an example of a source of internal economies of scale?

• Increased specialization of labor

• Improved transportation and communication

• Decreased demand for a product

How can a firm take advantage of internal economies of scale?

• By reducing its operations

• By investing in technology and improving its management practices

• By lowering its prices

• Bribery

What are the limitations of internal economies of scale?

• Improved efficiency

• Diseconomies of scale such as increasing coordination and communication costs

• Increased market share

Can a firm maintain its internal economies of scale over time?

• No, a firm's internal economies of scale will always decrease over time

• Yes, a firm can maintain its internal economies of scale over time by a continuously improving its production processes and investing in technology

• A firm's internal economies of scale can never be maintained over time

• Roblox

How does investment in technology impact internal economies of scale for a firm?

• Investment in technology has no impact on internal economies of scale

• Investment in technology increases internal economies of scale

• Investment in technology decreases internal economies of scale

• Investment in stocks

How does an increase in production volume lead to internal economies of scale?

• By reducing the average cost per unit of production

• By increasing the cost per unit of production

• By having no effect on the cost per unit of production

• Investing In Mcdonalds

Which of these are a part of Internal scale of economies

• Production Economies

• Marketing Economies

• Pricing Economies

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• Can I go to the bathroom