Question 1Adam Smithnoted each of the following economies of scale EXCEPT: A. specialization. B. diminishing returns. C. saving of time that would otherwise be spent going from one task to another. D. employment of expensive equipment. Question 2 Parkinsons Law is an example of: A. economies of scale. B. diseconomies of scale. C. XXXXX XXXXXs pin factory. D. the firms search for its most profitable output. Question 3 Which of the following is the most likely to be a variable cost? A. Raw material costs B. Leasing payments of tour buses for rock and roll bands C. Interest on bonded indebtedness D. Real estate taxes Question 4 As long as there are __________ costs we are in the short run. A. variable B. fixed C. marginal D. average
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