1. Introduction to Business Management

Economies And Diseconomies Of Scale — Quiz

Test your understanding of economies and diseconomies of scale with 5 practice questions.

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Practice Questions

Question 1

What does an economy of scale mean in business?

Question 2

Which is an example of a technical economy of scale?

Question 3

What is a diseconomy of scale?

Question 4

Which problem is most likely to cause diseconomies of scale in a large firm?

Question 5

Why can average costs fall when a business expands its output?