Economics Multiple Choice Question – 28 October 2018

Economies of scale …….?

Select ONE answer:

1. Lead to rising long-run average costs as output increases.
2. Occur when management complexity brings rising average cost.
3. Occur if output more than doubles when capital and labor double.
4. Occur if output less than doubles when capital and labor double.

Show your workings to arrive at your answer, and explain and justify your reasons:……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This multiple choice question is suitable for Economics KS5 classes.

The answer is 3

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