Economies and diseconomies of scale Flashcards

1
Q

Economies of scales

A

A cost advantages that can occur when a company increases their scale of production and becomes more efficient, resulting in a decreased cost-per-unit.

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2
Q

Diseconomies of scale

A

They occur when a business grows so large that the costs per unit increase.

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3
Q

Internal EOS/DOS

A

EOS:
- Technical
- managerial
- financial

DisEOC:
- managerial
- bureaucratic
- financial

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4
Q

External EOS/DOS

A

EOS:
- Market related
- input related
- location related

DisEOS:
- Market related
- input related
- location related

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