Economies Of Scale Flashcards
1
Q
Name the 7 internal economies of scale
A
- financial
- bulk buying
- managerial
-risk bearing
-technical - technological
-marketing
2
Q
Name 3 external economies of scale
A
- infrastructure
- extract suppliers
- education
3
Q
Name 2 internal diseconomies of scale
A
- communication/ control
- demotivating
4
Q
Me 2 external diseconomies of scale
A
- traffic congestion
- skill shortages
5
Q
What is the cause of a diseconomy of scale
A
Excessive of too quick expansion
6
Q
Define economy of scale
A
The crease of average costs as output increases
