Dis/Economies of Scale
functions/objectives
Math
Firms
Random
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100
When firms within an industry share additional cost advantages as the size of their industry increases.
What are external economies of scale?
100
The function of producers that involves turning inputs into outputs
What is combining the factors of production?
100
What is the total revenue when a café sells 300 coffees at 3 euros each?
900 Euros
100
Forestry and logging are examples from this sector of the economy
What is the primary sector
100
Firms that use similar production processes and specialize in the production of similar products are part of the same _________.
What is industry?
100
What state am I from?
Indiana
200
When similar firms within one or more industries cluster together in the same location, for example, wine producers in the Weinviertel.
What is an agglomeration economy?
200
Events such as recessions and competition with overseas firms can make it difficult for firms to ________.
What is survive?
200
A firms variable costs are 15 euros per unit, and 200 units are produced. What are the total variable costs?
3000 euros
200
A type of firm that is financed by the sale of shares to shareholders
What is a joint-stock or limited company
200
A way to measure the size of a firm that looks at the proportion of total sales revenue in an industry that belongs to that firm
What is market share?
200
What can be seen once in a minute, twice in a moment and never in a thousand years?
m
300
When a firm grows too much and must understand and comply with regulations (such as price or quality controls), which raises total costs in the firm
What is a regulatory diseconomy?
300
Capturing market share, increasing sales, advertising, and developing new products are all ways of doing this.
What is maximizing profit?
300
Total cost / total output
Average cost per unit
300
When one firm that produces chocolate merges with another that produces gardening tools it is this type of merger.
What is lateral integration?
300
Calculate the average product of labor if a farm grows 500 kilograms of garlic and has 10 employees.
50 kilograms/employee
300
How many curves are on a standard paper clip?
3
400
A large food producer researches and develops a new delicious snack to add to their line of products
What is a technical economy of scale?
400
What a social entrepreneur wants to maximize, rather than profit
What are improvements in social and environmental wellbeing
400
A restaurant pays 2000 euros in rent each month and 100 euros for licenses to sell food. In addition, they also pay each employee an hourly wage of 15 euros and must also pay 15 euros per kilogram of beef bought for their dishes. What are their total fixed costs?
2100 euros
400
How state-owned enterprises (SOEs) are funded
Taxes
400
A bank hires 3 new employees, each with their own set of skills. One studied IT. Another is an expert at selling loans. The third went to school for accounting. Each employee will work in his or her area of expertise. This is an example of a firm making the best use of its resources through ___________.
What is specialization?
400
What is my favorite Austrian grocery store?
Hofer
500
A large scale flour mill wants to produce more flour and achieve lower costs per unit, however, there is not enough wheat to produce this flour.
What is a supply constraint diseconomy?
500
How to calculate value added (this is a function of producers)
Value added = market price (of the finished product) - cost of all materials, tools, etc.
500
Calculate the break-even level of output: Total fixed costs are 5000 euros. The price per unit is 15 euros and the selling price is 25 euros.
500 units
500
When a cheese making company merges with a dairy farm it is this type of merger.
What is backward vertical merger?
500
An insurance company has 3 employees working in sales, 2 employees working in finance, and 1 administrative employee. They make 12,000 euros of revenue per week. What is their average revenue product of labor?
2,000 euros/employee
500
What is the largest living land carnivore in the world?
(A carnivore is an animal that primarily eats meat. In German you may know it is a Raubtier or a Fleichfresser)
Polar bear
