economies and diseconomies of scale Flashcards

1
Q

what are economies of scale

A

cost advantages gathered when production becomes efficient

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

give examples of economies of scale

A

speed up production rate, reduce labour cost per unit etc

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

what are diseconomies of scale

A

rather than Decreasing cost and Increasing production rate, the opposite occurs: the cost Increases when production rate Increases

How well did you know this?
1
Not at all
2
3
4
5
Perfectly