ch 40 definitions Flashcards
1
Q
scale
A
size of a business
2
Q
economies of scale
A
financial advantages of producing something in very large quantities
3
Q
diseconomies of scale
A
rising average costs when a firm becomes too big
4
Q
internal economies of scale
A
cost benefits that an individual firm can enjoy when it expands
5
Q
external economies of scale
A
cost benefits that all firms in the industry can enjoy when the industry expands
