The cost which firm will incur whether it is in production or not, is referred to as
Average cost
Variable cost
Opportunity cost
Fixed cost
Correct answer is D
No explanation has been provided for this answer.
Economist speaks about ‘opportunity cost’ when a consumer
He has the change to minimize cost
Has to forgo one thing in order to have another
Can equate his fix costs with his variable costs
Is able to save part of his income
Correct answer is B
No explanation has been provided for this answer.
Localization of industry refers to the
Concentration of the firms of an industry in a particular area
Siting of industries in rural areas
Even spread of industries
Government policy of influencing
Correct answer is A
No explanation has been provided for this answer.
Despite the benefits large firms enjoy, it could be limited by the
A desire to make maximum profit
Introduction of efficient transport system
Growth of specialization
Extent of the market
Correct answer is D
No explanation has been provided for this answer.
Which of the following is an advantage of division of labour?
Production of specialized goods
Employment of experts
Monotony of work
Greater use of machinery
Correct answer is A
Division of labour is the separation of a work process into a number of tasks, with each task performed by a separate person or group of persons. This leads to specialization as people get to work on specific tasks and become efficient and expertise in that area.
In this regards, division of labour allows the agents/people to focus on areas of advantage due to natural factors and skill levels.