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Free CIMAPRA17-BA1-1 Exam Braindumps (page: 29)

Page 29 of 118
PDF with 468 Questions

In the long run a firm may find its average cost of production rising because

  1. of the operation of diminishing returns to a fixed factor
  2. of the effect of diseconomies of scale
  3. over time the price of purchased inputs rises
  4. in the long run all costs are variable costs

Answer(s): B



Which of the following influences explains why the average costs of a firm will rise in the short run?

  1. Diseconomies of scale
  2. Rising unit costs
  3. Diminishing marginal returns
  4. Diminishing returns to scale

Answer(s): C



Which ONE of the following statements best defines a fixed cost?

  1. A cost that will not rise from year to year
  2. A cost that rises as efficiency falls
  3. The difference between total cost and average cost
  4. A cost that stays constant as output falls

Answer(s): D



If in the short run a business raises the output of its product then

  1. average fixed cost will remain constant over the whole range of output
  2. average variable cost will fall over the whole range of output
  3. average total cost will initially fall and then rise as output is increased
  4. average total cost will fall until constant returns to scale achieved

Answer(s): C



Page 29 of 118



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