Diseconomies Of Scale Flashcards
1
Q
What is Dis economies of Scale?
A
Is when a firm/business becomes too large in average cost after cost increase
2
Q
What are the factors that give rise to dis conomies of Scale?
A
1.Management and Administration problems
2. Workers may not be cooperative
3. As firm’s demand for factor inputs grows the price of the factors of production increase this will cause the firm production cost to increase
3
Q
What causes Diseconomies of scale to occur?
A
Control problems and Coordination Problems
4
Q
How to calculate Total Revenue?
A
Price × Quantity
5
Q
Marginal Revenue is
A
The additional revenue earned from selling one more unit for product
6
Q
How to calculate Average Revenue?
A
Total Revenue ÷ Quantity
