Question

36 Which type of merger aims to ensure control of retail outlets? A Conglomerate B Horizontal C Vertical backwards D Vertical forwards 37 A confectionery manufacturer buys a local newspaper. What type of merger is this? A Conglomerate integration B Horizontal integration C Vertical integration backwards D Vertical integration forwards 38 Which economy of scale is an external economy? A Ability to buy raw materials in bulk B Ancillary industries providing goods and services for the industry C Costs reduction achieved by using more efficient machines D More efficient use of the skills of workers 39 Which feature is an advantage of small scale production? A Diversification B Division of labour C Economies of scale D Flexible production 40 What can cause internal economies of scale? A Afirm's costs rising by more than its output B A reduction in a firm's productive efficiency C An increase in the size of a firm's factories D A rise in the number of firms in the industry

There are 7 easy fundamental economic questions, it will cost you 30 seconds each, please answer all of them and then I will give positive feedback to you , thank you

Answer 1

2036 Siswer: (D) Vertical Forwards Explanation : Under this, Under this manufacturer reduce steps between distribution puress and manufacturing It is a faward merger points ie retail outlets. it ains est toward distributi - bu Qo37. (A) Conglomerate integration Explanation: As newspaper I confectionary merger aul unuelated industries which aing to achieve sine. big Q038 the dus. (B) providing goods & services Ancilliay Industries industry Reason: External economies accrue to a firm which is inespecti its uale. Ancillary industry develops ove a out in reducing per unit of beriod of cost. time helping olemal to finis operations. This, it Q039 Aus 39. (D) Fressible poderction Reason: There is a high degree of adaptability / flexibility in production Processed due to small seal production Any change related to processes can be introduced without much cost escalations (Ans:40) unit Reason: des: (C) An increase in the size of fim's factories Rising factory size helps in reducing pee more oulpect spreads over cost tas which causes firm firm to enjoy economies of and Cost به Scale mou (Arus ui) (B) High set up costs: Reason: Capital Intrusive industry employs capital relative to labor into puoduction process which requires luge, investueeta m plaude machinery which recebe establishment costs. sed the (hus 42) (D) sowe profit to achieve other goals. Fagoing manages Reason! Owney ľ have different goals as a a result there occuus leads to a of profits at pincipal - agut problem. This in the auteusts I goals divergence in the cost (this 43) 40 000 AVC - 8o $ Variable costs = output 500 500 AC = Total costs loouo + 40000 - loo$ output .: Answer is (C:) $100 is AC d $80 is AVC Scanned with CamScanner CS Scanned with CamScanner