Production, Costs, Revenue, and Profit

?

1. Which of these is NOT an advantage of market share as a business objective?

  • Can lead to higher costs (eg. for advertising, new equipment)
  • Bench marks the firm's success against its competitors
  • Deters new competitors
1 of 20

Other questions in this quiz

2. Which of these is NOT an internal economy of scale?

  • Network - adding extra users to a network that already exists (eg. Amazon)
  • Business - increasing output
  • Technical - use of specialist equipment/processes
  • Buying - bulk buying to reduce prices (eg. Cosco)
  • Financial - larger firms benefit from access to more and cheaper finance (eg lower interest rates on loans)
  • Marketing - spreading a fixed marketing spend over a large range of products, marketing, and customers

3. What happens to costs as productivity increases?

  • Fixed costs per unit decreases
  • Total costs per unit decreases
  • Variable costs per unit decreases

4. Which of these is NOT an advantage of use of technology for improving productivity?

  • Minimising the cost of waste
  • Producing more output
  • Increasing wastage
  • Output it more accurate/manufactured to a higher standard

5. Which of these is not one of the main business objectives?

  • Market share
  • Economies of Scale
  • Sales growth
  • Profit motive
View more questions

Comments

No comments have yet been made

Similar Economics resources:

See all Economics resources »See all Topic 4 : Production, Costs, Revenue, and Profit resources »