Business Chapter 5

Question 1

Diseconomies of scale

Answer 1

Rising long-run average costs as a business expands beyond its minimum efficient scale

Question 2

Economies of scale

Answer 2

Thé réductions in average costs experienced by a business as output increases

Question 3

External economies of scale

Answer 3

The cost reductions available to all businesses as the industry grows

Question 4

Indivisibility (неделимость)

Answer 4

The physical ability, or economic inappropriateness, of running a machine or some other piece of equipment as below its optimal operational capacity

Question 5

Inorganic growth

Answer 5

A business growth strategy that involves two or more businesses joining together to form one much larger one

Question 6

Internal economies of scale

Answer 6

The cost reductions experienced by a single business as it grows

Question 7

Minimum efficient scale

Answer 7

The output that minimises long run average costs

Question 8

Organic growth

Answer 8

A business growth strategy that involves a business growing gradually using its own resources

Question 9

Sole trader or sole proprietor

Answer 9

A business organisation which has a single owner

Question 10

Venture capitalist

Answer 10

Provider of funds for small or medium sized companies that may be considered too risky for other investors