economics chapter 20-firms

2. What type of economy of scale allows firms to spread risks across
3. How do specialist suppliers help reduce costs for
5. Which type of internal economy of scale occurs when large firms buy raw materials in bulk?
6. What happens when a firm grows by expanding its existing operations?
8. Which type of merger ensures control over retail outlets?
10. What do you call a group of firms producing the same product?
14. How do workers gain relevant skills for an industry?
16. Why is it difficult to communicate effectively in large
17. How can a firm’s reputation help increase sales?
18. In which sector do state-owned enterprises operate?
19. What type of merger occurs between firms producing different products?

1. What do you call small firms that supply specialist products and distribute them to large firms?
4. Which cost curve shows costs falling and then remaining constant?
7. What do large industries use for specialized selling places and
9. What is the process of eliminating unnecessary equipment and plants to improve efficiency?
11. What happens to costs when a firm grows too large?
12. How do better roads, electricity, and transport benefit businesses?
13. What visual representation consists of four
15. Which sector involves knowledge-based activities?
16. What challenge do large firms face in managing operations?