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23 Cards in this Set
- Front
- Back
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Def of economies of scale |
These are the adv in the form of the fall in the LRAV as market large scale production |
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Adv of economies of scale |
1) low interest rate 2) easier to get a loan 3? Lowe cost of production |
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Name types of economies of scale |
1) Internal economies of scale 2) external economies of scale |
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Def of economies of scale |
These are the adv to a firm in the fall of the LRAVC resulting from its expansion |
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Types of internal economies of scale |
1) buying economies. Large economies buy goods in bulk. They can get a trade discount which will reduce cost of production 2) selling economies. Large firms produce large quantities. The total cost cost of advertisement, packaging adn transport cane be spread out. This reduces unit cost 2) technological economies of scale. Large firms have enough founds to invest in new technology or advanced technology. This will increase productivity, which will therefore increase efficiency and reduce unit cost 3) financial economies. Large firms can easily get loans from banks at a lower interest rate m. Which will reduce the cost of buying 4) managerial economies of scale. Large firms attract managers with high qualifications and skills. This will increase productivity and efficiency which will reduce unit cost |
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Def of external economies |
These are adv to an industry in the form of a fall in the LRAVC as a result of a firms growth |
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Def of external economies |
These are adv to an industry in the form of a fall in the LRAVC as a result of a firms growth |
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Adv of economies of scale |
1) economies of info. From R and D spread to other firms in the industry 2) reputation. An area can gain a reputation for high quality production. 3) specialist markets. Some large industries have specialist selling places and arrangements, such as insurance market 4) improved infrastructure. The growth of an industry can encourage government and private sector firms to provide better roads etc 5) specialist services. Firms may provide services, specially designed to meet the particular need of firms in the industry |
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Def of external economies |
These are adv to an industry in the form of a fall in the LRAVC as a result of a firms growth |
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Adv of economies of scale |
1) economies of info. From R and D spread to other firms in the industry 2) reputation. An area can gain a reputation for high quality production. 3) specialist markets. Some large industries have specialist selling places and arrangements, such as insurance market 4) improved infrastructure. The growth of an industry can encourage government and private sector firms to provide better roads etc 5) specialist services. Firms may provide services, specially designed to meet the particular need of firms in the industry |
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Def of diseconomies of scale |
These are the disadvantages to a firm in the form of an arise in the LRAVC due to large scale of production |
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Def of external economies |
These are adv to an industry in the form of a fall in the LRAVC as a result of a firms growth |
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Adv of economies of scale |
1) economies of info. From R and D spread to other firms in the industry 2) reputation. An area can gain a reputation for high quality production. 3) specialist markets. Some large industries have specialist selling places and arrangements, such as insurance market 4) improved infrastructure. The growth of an industry can encourage government and private sector firms to provide better roads etc 5) specialist services. Firms may provide services, specially designed to meet the particular need of firms in the industry |
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Def of diseconomies of scale |
These are the disadvantages in the form of an arise in the LRAVC due to large scale of production |
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What’s internal diseconomies of scale |
These are the disadvantages to a firm in the fall of a rise in the LRAVC due to its large scale of production |
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Def of external economies |
These are adv to an industry in the form of a fall in the LRAVC as a result of a firms growth |
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Adv of external economies of scale |
1) economies of info. From R and D spread to other firms in the industry 2) reputation. An area can gain a reputation for high quality production. 3) specialist markets. Some large industries have specialist selling places and arrangements, such as insurance market 4) improved infrastructure. The growth of an industry can encourage government and private sector firms to provide better roads etc 5) specialist services. Firms may provide services, specially designed to meet the particular need of firms in the industry |
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Def of diseconomies of scale |
These are the disadvantages in the form of an arise in the LRAVC due to large scale of production |
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What’s internal diseconomies of scale |
These are the disadvantages to a firm in the fall of a rise in the LRAVC due to its large scale of production |
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Types of internal diseconomies of scale |
1) communication problems. Large layers of management may distract information 2) high cost of supervision due to high number of managers 3) problems of control. Supervision becomes difficult due to large span of control 4) industrial actions from trade unions. Workers demand for higher pay |
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Def of external diseconomies of scale |
These are the disadvantages to an industry in the form of a rise in the LRAVC due to large scale of production |
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Def of external diseconomies of scale |
These are the disadvantages to an industry in the form of a rise in the LRAVC due to large scale of production |
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Types of external diseconomies of scale |
1) externalties. Such as pollution 2) high transport cost due to traffic congestion 3) increased competition of resources, pusingoo of the price of labour |
