diseconomies of scale Flashcards
1
Q
what does this mean
A
it means when your business gets bigger you might have to start paying more to adapt to getting more popular and satisfying those needs
2
Q
explain what happens when average cost is high
A
high cost for product = less produced(less output)
3
Q
what happens when cost of product is lower
A
lower price= more made and produced
4
Q
what are internal economies of scale
A
when it’s only going to affect the benefits of your firm because it’s something u have that makes you make more profit
5
Q
external economies of scale
A
when changes in the outside world affect your costs potentially makeing your profits change for u and other businesse
