Cima C04 Exam Question No 36

Question No 36:

All of the following are example of the sources of internal economies of scale for a business except one. Which ONE is the EXCEPTION?

A. Lower external financing costs for a larger firm
B. Greater specialisation of tasks in its labour force
C. Lower supply costs resulting from its bulk buying
D. Lower production costs resulting from long run technical change in the economy

Answer: D

Cima C04 Exam Question No 35

Question No 35:

The optimum level of output for a business is where:

A. Profits are maximised
B. Revenue is maximised
C. Marginal cost is minimised
D. Average cost is minimised

Answer: A

Cima C04 Exam Question No 34

Question No 34:

The profit maximising level of output for a business is where:

A. Average costs are lowest
B. The difference between total cost and total revenue is greatest
C. Where average revenue is highest
D. Where average revenue is equal to average cost

Answer: B