Micro A2 - Economies & Diseconomies Of Scale Flashcards
1
Q
Economies of Scale
A
A saving in the cost of a product as the production increases
2
Q
What is Diseconomies of Scale
A
When a business expands by a large amount that causes the cost per unit to increase
3
Q
Types of Internal Economies of Scale
A
- technical
- purchasing
- marketing
- ## managerial
4
Q
Types of External Economies of Scale
A
- ## Infrastructure
5
Q
What is Internal Economies of Scale
A
A measure of how efficient a company’s production methods are
6
Q
What is External Economies of Scale
A
Factors that have affect upon the whole industry, e.g. when a industry grows the average business costs will decrease.
