Theme 3: Business Growth Flashcards

1
Q

Why do some firms tend to remain small?

A
  • Don’t have the finance
  • Regulations
  • Niche markets
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

What are the 6 types of internal economies of scale?

A
  • Risk bearing
  • Managerial
  • Financial
  • Purchasing
  • Technical
  • Marketing
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

What do internal economies of scale do?

A

Increasing output which reduces long run average costs and increase a firms profit

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

What are the 3 types of internal diseconomies of scale?

A
  • Alienation
  • Bureaucracy
  • Communication
How well did you know this?
1
Not at all
2
3
4
5
Perfectly