Theme 3: Business Growth Flashcards
1
Q
Why do some firms tend to remain small?
A
- Don’t have the finance
- Regulations
- Niche markets
2
Q
What are the 6 types of internal economies of scale?
A
- Risk bearing
- Managerial
- Financial
- Purchasing
- Technical
- Marketing
3
Q
What do internal economies of scale do?
A
Increasing output which reduces long run average costs and increase a firms profit
4
Q
What are the 3 types of internal diseconomies of scale?
A
- Alienation
- Bureaucracy
- Communication
