Question: External economies of scale arise when the cost per unit remains constant over a broad range of output. rises as the industry grows larger and falls as the average firm grows larger. falls as the industry grows larger and rises as the average firm grows larger. rises as the industry and the average firm grows larger. falls as the industry and the average

15. External economies of scale occur when: a. average costs fall as the output of individual firms rises. b. average costs fall as the output of the industry rises. c. there are only small fixed costs. d. there are no fixed costs. e. none of the above is correct. 16. Suppose the global market for coffee is monopolistically competitive.

QUESTION 3 and in the presence of external economies of scale, it is The long-run market supply curve in the presence of internal economies of scale is A horizontal; upward sloping OB. downward sloping, downward sloping C. upward sloping: downward sloping D.downward sloping: horizontal QUESTION 4 In the presence of external economies of scale, trade A. will …

28 When there are external economies of scale, an increase in the size of the market will: A) not affect the number of firms, but will lower the price per unit. B) decrease the number of firms and lower the price per unit. C) decrease the number of firms and raise the price per unit. D) increase the number of firms and raise the price per unit.

Question: 1. External economies of scale occur when average costs A. rise as the industry grows larger. B. fall as the industry grows larger but rise as the representative firm grows larger. C. fall as the representative firm and industry grows larger. D. remain constant.

Question: External economies of scale exist when an industry's outputs increase anda.a firm's long run average cost curve shifts downward.b.a firm's long run average cost curve shifts upward.c.a firm's long run average cost curve stays the …

The existence of internal economies of scale A) cannot be associated with a perfectly competitive industry. B) may be associated with a perfectly competitive industry. C) is associated only with sophisticated products such as aircraft. D) cannot form the basis for international trade. E) focuses more on the industry than individual firms.

Question: External economies of scale can occur whenQuestion 45 options:an industry's firms become more dispersed.there is a decrease in specialized workers.firms seek out consultants for technical knowledge.knowledge of production technology spreads through direct contacts.

Question: External economies of scale arise when the cost per unitA) rises as the industry grows larger.B) falls as the industry grows larger.C) falls as the average firm grows larger.D) remains constant.E) None of the above.2) If some industries exhibit internal (firm-specific) increasing returns to scale in eachcountry, we should not expect to seeA)

1) External Economies of Scale. Suppose the production of buttons exhibits external economies of scale. There are two countries in the world, home and foreign. In the home country, demand for buttons is, D = 4 −P/4, while the average cost of buttons is, AC = 10 − Q .