Economics - Study Mode

[#1456] Economies of scale are of two kinds
Correct Answer

(B) Internal and external

Explanation

Solution: Economies of scale are of two kinds Internal and external. Internal economies of scale are firm-specific or caused internally while external economies of scale occur based on larger changes outside the firm. Both result in declining marginal costs of production, yet the net effect is the same.

[#1457] Which statement is true
Correct Answer

(D) AFC + AVC = ATC

Explanation

Solution: AFC + AVC = ATC is true.

[#1458] Identify the economist who had little formal education and started working in the money market at an early age of fourteen.
Correct Answer

(A) David Ricardo

Explanation

Solution: David Ricardo the economist had little formal education and started working in the money market at an early age of fourteen. At the age of 14 he entered into business with his father, who had made a fortune on the London Stock Exchange.

[#1459] In which form, the largest percentage of national income is earned?
Correct Answer

(C) Employee' wages

Explanation

Solution: In the form of Employee' wages, the largest percentage of national income is earned.

[#1460] Law of return applies to firms working in
Correct Answer

(D) All kinds of market situations

Explanation

Solution: Law of return applies to firms working in all kinds of market situations. A firm's production function could exhibit different types of returns to scale in different ranges of output.