Firms: แบบฝึกหัด

A manufacturing firm increases all its factors of production by \( 50\% \). As a result, its total output increases by \( 80\% \). Which economic concept does this change best describe?

A firm in a competitive market decides to prioritize survival as its main objective during an economic recession. What is this firm most likely to do?

What is the most likely primary objective of a newly established firm entering a highly competitive market with many well-known brands?

Which type of merger occurs when a car manufacturer merges with a company that provides car insurance services, where the two businesses are in different industries?

Which of the following is most likely to be an external economy of scale for a firm in the technology sector?

State two internal diseconomies of scale that a firm might experience as it grows too large.

Explain one reason why a car manufacturer might engage in backward vertical integration.

Explain how diseconomies of scale can result from communication problems in a large firm.

A large textile firm operates in the secondary sector and is considering expanding its production capacity.

(a) Identify two characteristics that distinguish a firm in the secondary sector from a firm in the tertiary sector.
(b) State one advantage and one disadvantage for a firm that chooses to remain small.
(c) Define average total cost (ATC) and state the formula used to calculate it.

Firms often seek to expand their operations through different methods of growth.

(a) Define internal growth and provide one example of how a firm might achieve it.
(b) Distinguish between a horizontal merger and a vertical merger.