Economies of scale

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Internal economies of scale are those that

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Generate lower per unit production costs

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If a firm increases its use of all factors of production but sees an increase in its average costs, this is a sign of

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Internal diseconomies of scale

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Diseconomies of Scale result in a lower per unit production cost over the long run

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False

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External economies of scale can arise from: Greater availability of skilled laborers for a particular industry in a particular area

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Greater availability of skilled laborers for a particular industry in a particular area

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Machinery is likely to be efficient. What economies does it indicate? Financial Economies, Buying Economies, Technical Economies, Managerial Economies

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Technical Economies

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Internal diseconomies of scale can be caused by: Management control being weakened with a larger workforce.

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Management control being weakened with a larger workforce

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If a firm doubles its use of inputs and finds that output increases by 50%, then it has experienced

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Diseconomies of scale

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Economies of scale are gained when a business increases it's production and causes a decrease in average production costs.

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increases it's production and causes a decrease in average production costs