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Exam Name:	Fundamentals of Business Economics
Exam Code:	BA1 Dumps
Vendor:	CIMA	Certification:	CIMA Certificate
Questions:	468 Q&A's	Shared By:	emilio

Question 52

Economies of scale can result from all the following except one. Which is the exception?

Options:

An increase in the size of a firm's capacity and plant

A bus company replacing smaller buses with larger buses

A factory employing two shifts of workers rather than one shift per day

Increased firm size allowing the firm to employ specialist managers

Discussion

Question 53

The average price of recorded music CDs has been declining for several years. Which of the following changes in market conditions would NOT be a cause of this?

Options:

Availability of new cheaper substitutes such as downloads

Increased competition due to entry to the market by supermarket and internet sellers of CDs

Decline in the number of CD shops due to bankruptcy and closure

Growth in popularity of alternative goods such as mobile phones and video games

Discussion

Question 54

Which ONE of the following would make the market supply of a product price elastic?

Options:

Suppliers are unable to store unsold product

Firms can join the industry easily

Demand is price elastic

There is a shortage of resources to make the product

Discussion

Question 55

Why do monopoly market structures charge higher prices than would be charged by more competitive market structures?

Options:

They are more likely to suffer from diseconomies of scale

They must recover their higher research and development expenditures

They can increase profits by reducing output to force prices higher

They have barriers to entry that stop customers going to new markets

Discussion

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