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.
2
Q
Diseconomies of scale
A
They occur when a business grows so large that the costs per unit increase.
3
Q
Internal EOS/DOS
A
EOS:
- Technical
- managerial
- financial
DisEOC:
- managerial
- bureaucratic
- financial
4
Q
External EOS/DOS
A
EOS:
- Market related
- input related
- location related
DisEOS:
- Market related
- input related
- location related