Chapter 65, Economies and diseconomies of scale Flashcards
1
Q
Economies of scale
A
a reduction in unit costs achieved as the scale of production increases
2
Q
Diseconomies of scale
A
an increase in unit cost as a result of an increased scale of production
3
Q
Internal Growth
A
natural growth of a firm achieved be increased production and sales
4
Q
External growth
A
growth achieved by the takeover and merger
