Economies of scale review

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Purchasing EoS
Cost of raw materials falls as bought in large amounts
1 of 10
Technical EoS
Afford to buy expensive capital machinery as their high production spreads out this cost
2 of 10
Financial EoS
Borrow more money from bank with lower interest because less risky
3 of 10
Managerial EoS
Employ specialists to take higher level jobs as the high salaries attract experts
4 of 10
Riskbearing EoS
Diversify into different firms to reduce risk of failure
5 of 10
Marketing EoS
Large advertising budjet and they can expose their products to be sold in a costs effective way
6 of 10
Management DoS
Many departments in lots of locations so communication and decision making is slower and harder bc of dissagreements
7 of 10
Agglomerate DoS
Too much diversification so managers struggle to keep up
8 of 10
Labour DoS
Workers become demotivated of their repetitive tasks
9 of 10
EoS
Average costs of production fall as a firm grows or increases output
10 of 10

Other cards in this set

Card 2

Front

Afford to buy expensive capital machinery as their high production spreads out this cost

Back

Technical EoS

Card 3

Front

Borrow more money from bank with lower interest because less risky

Back

Preview of the back of card 3

Card 4

Front

Employ specialists to take higher level jobs as the high salaries attract experts

Back

Preview of the back of card 4

Card 5

Front

Diversify into different firms to reduce risk of failure

Back

Preview of the back of card 5
View more cards

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