Production And Efficiency Flashcards
1
Q
What is the division of labour?
A
Divides the production process into different stages
2
Q
What is specialization?
A
Workers are assigned to specific tasks within the production process
3
Q
What are the advantages of specialization?
A
Higher output
Increased market share
Increased competition
4
Q
What are the disadvantages of specialization?
A
Disincentive - boring
5
Q
What is the equation of productivity?
A
Output/ no. of workers
6
Q
What are economies of scale?
A
Falling long-run average costs as output rises
7
Q
What are the economies of scale? (5) PFMMT
A
Purchasing Financial Marketing Managerial Technological
8
Q
What are diseconomies of scale?
A
Rising long-run average costs as output rises
9
Q
What are the diseconomies of scale? (3) CCC
A
Control
Co-ordination
Communication
