Chapter 17 Flashcards
1
Q
Scale
A
The size of a business
2
Q
Diseconomies of scale
A
Rising average costs when a firm becomes too big
3
Q
Economies of scale
A
Falling average costs due to expansion
4
Q
Internal economies of scale
A
Cost benefits that an individual firm can enjoy when it expands
5
Q
Bulk Buying
A
Buying goods in larger quantities, which is usually cheaper than buying in small quantities
6
Q
External Economies of scale
A
Costs benefits that all firms in an industry can enjoy when the industry expands
7
Q
A
