Micro 4.5 0.0 / 5 ? EconomicsCosts of Production in the Long RunA2/A-levelAQA Created by: neve.whinnCreated on: 13-03-20 10:31 What are costs influenced by in the long run? Increasing or decreasing returns to scale. 1 of 6 What do returns to scale refer to? The relationship between increases in the quantity of a firm’s inputs and the proportional change in output. 2 of 6 What are 3 examples of returns to scale? Increasing returns to scale, constant returns to scale and decreasing returns to scale. 3 of 6 When do increasing returns to scale happen? When an increase in the quantity of a firm’s inputs leads to a proportionally greater change in output. 4 of 6 When do constant returns to scale happen? When an increase in the quantity of a firm’s inputs leads to a proportionally identical change in output. 5 of 6 When do decreasing returns to scale happen? When an increase in the quantity of a firm’s inputs leads to a proportionally lower change in output. 6 of 6
AQA Unit 3 Economics: Business Economics and the Distribution of Income 5.0 / 5 based on 1 rating Teacher recommended
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