Unit 89 Flashcards
(8 cards)
0
Q
Rising long-average costs as a firm expands beyond its minimum efficient scale
A
Diseconomies of scale
1
Q
Production methods which employs a large amount of machinery relative to labour
A
Capital intensive production
2
Q
The reductions in cost gained by firms as they grow
A
Economies of scale
3
Q
The cost reductions available to all firms as the industry grows
A
External economies of scale
4
Q
The cost reductions enjoyed by a single firm as it grows
A
Internal economies of scale
5
Q
Production methods which rely on a large workforce relative to the amount of machinery
A
Labour intensive production
6
Q
The output which minimizes long-run average costs
A
Minimum efficient scale (MES)
7
Q
The size of the business
A
Scale (of a business)
