ECONOMICS
TECHNOLOGY
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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If a firm doubles its use of inputs and finds that output increases by 50%, then it has experienced
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Growth
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Economies of scale
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Diseconomies of scale
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Evolution
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Explanation:
Detailed explanation-1: -This is an example of increasing returns to scale.
Detailed explanation-2: -A firm is said to experience diseconomies of scale when long-run average cost increases as the firm expands its output. Constant returns to scale occur when long-run average cost stays the same over an output range.
Detailed explanation-3: -Diseconomies of scale occur when a firm experiences an increase in its average cost as its total output increases. Economies of scale are the opposite of diseconomies of scale. They occur when a company experiences a decrease in average cost as the total output increases.
Detailed explanation-4: -Communication Breakdown. Reduced Motivation. Lack of Coordination and Loss of Direction. 12-Dec-2022
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