A large firm may experience diseconomies of scale if there is
Difficulty in coordinating decisions
Division of labour in production
Employment of more specialist
Decrease in the cost of production
Correct answer is A
Diseconomies of scale occur when a firm or business grows so big that the costs per unit of output increase. If the firm becomes so large that it can no longer efficiently coordinate production activities, it will most likely experience diseconomies of scale.
If a beef market is in equilibrium at $4.00 per kg, an increase in price to $6.00 per kg may cause
Surplus in the market
Shortage in the market
Black market to come into operation
Rationing to be introduced
Correct answer is A
When a price floor is set above the equilibrium price, quantity supplied will exceed quantity demanded, and excess supply or surpluses will result.
2.00
1.50
1.00
0.50
Correct answer is A
The price elasticity of supply = % change in quantity supplied / % change in price
% change in quantity supplied = 250 - 200 = 50
50/200 x 100 = 25
Therefore, price elasticity of supply = 25/12.5 = 2
An increase in supply means that
More is sold at different prices
More is sold at the same price
There is a leftward shift of the supply curve
There is a movement along the supply curve
Correct answer is B
An increase in supply refers to the rise in the supply of a good or service at the same price or a rightward shift in the supply curve.
This means that producers plan to sell more of the goods at each possible price.
If an increase in the supply of beef increased the supply of hides, then beef and hides are in
Competitive supply
Joint supply
Composite supply
Joint demand
Correct answer is B
Joint supply refers to a product that can end up being transformed into at least two other types of goods. for instance, hides are a natural by-product of meat production and are gotten from livestock. An increase in the supply of beef will automatically lead to an increase in the production and supply of hides.