Unit 2 Flashcards
1
Q
fixed costs
A
do not vary with the level of output
2
Q
variable costs
A
costs that change in proportion to the level of goods or service a business produces
3
Q
bulk purchasing
A
the business can buy materials in larger quantities at a discount, reducing cost/unit
4
Q
operational efficiency
A
with more production, the business can optimise its production process, reducing time and waste/product
5
Q
economies of scale
A
Monopolies can achieve economies of scale, meaning they can produce goods or services at a lower cost/unit due to their large scale of production
6
Q
oligopoly
A
An oligopoly exists where a market s dominated by a few firms. Eg phone networks.
7
Q
A
