ch 40

Question 1

economies of scale

Answer 1

financial adv. (falling avg cost) of producing something in very large quantities

Question 2

diseconomies of scale

Answer 2

rising avg cost when a firm becomes too big

Question 3

internal economies of scale

Answer 3

cost benefits that an individual firm can enjoy when it expands

Question 4

external economies of scale

Answer 4

cost benefits that all firms in the industry can enjoy when the industry expands

Question 5

(bureaucracy)

Answer 5

system of administrations that uses a large number of departments and officials

Question 6

(coordinate)

Answer 6

to organise people or things that work well tgt