Economies of Scale

?
  • Created by: 08bstopps
  • Created on: 08-04-14 17:05
What are economies of scale?
Lower average costs resulting from the expansion of a firm
1 of 5
What do financial economies of scale mean?
Due to the growth of a firm, banks and other lenders charge less interest and negotiate on better terms than with smaller risker firms
2 of 5
What are diseconomies of scale?
Rising average costs due to the expansion and growth of a firm
3 of 5
At what point on an average cost curve are firms productively efficient?
At the lowest point of the U shape
4 of 5
What is managerial economies scale linked to?
Linked to the division and specialisation of labour
5 of 5

Other cards in this set

Card 2

Front

What do financial economies of scale mean?

Back

Due to the growth of a firm, banks and other lenders charge less interest and negotiate on better terms than with smaller risker firms

Card 3

Front

What are diseconomies of scale?

Back

Preview of the front of card 3

Card 4

Front

At what point on an average cost curve are firms productively efficient?

Back

Preview of the front of card 4

Card 5

Front

What is managerial economies scale linked to?

Back

Preview of the front of card 5

Comments

No comments have yet been made

Similar Economics resources:

See all Economics resources »See all Economies of scale resources »