5. Topic 5(COLON) Theory of the Firm(COLON) Production, Costs and Revenue

Lesson 5.3: Long-run Costs, Returns To Scale And Economies Of Scale — Quiz

Test your understanding of lesson 5.3: long-run costs, returns to scale and economies of scale with 5 practice questions.

Practice Questions

Question 1

What defines the long run in economics?

Question 2

Which type of returns to scale occurs when increasing inputs results in a proportionally larger increase in output?

Question 3

What is the effect of internal economies of scale on the average cost of production?

Question 4

Which of the following describes external economies of scale?

Question 5

What does the LRAC curve represent in economics?