3.3.3 Economies of Scale

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Across
  1. 5. an increase in inputs leads to the same proportional increase in output
  2. 7. large productive machinery that cannot be scaled down is accessible to larger firms​
  3. 8. can lose accuracy
  4. 10. Cost savings from hiring specialized managers to improve efficiency as the business grows.
  5. 12. Cost savings from using more efficient technology as the business grows.
  6. 13. Type of economy of scale where reduction in average unit costs of the firm as a result of an increase in the size of the industry.​
Down
  1. 1. _can be slow in a large business
  2. 2. Problems that arise when a business becomes too large, like poor management or higher costs.
  3. 3. Large firms can buy large quantities of materials at once
  4. 4. Type of economy of scale where reduction in average unit costs as the firm increases in size
  5. 6. Lower costs or better deals on loans due to the business’s larger size.
  6. 9. Return When adding more resources results in less output, and costs increase.
  7. 11. Minimum Efficient Scale is the _ point on the LRAC curve