Internal and external economies of scale.

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Across
  1. 2. occur when a firm expands its capacity and its cost per unit increases.
  2. 3. occur when the cost of producing a unit falls as the firm increases its scale of production.
  3. 4. as firms grow bigger, they are able to employ managers to specialize in different areas of the organization.
  4. 6. occur when unit costs increase as the scale of production increases.
  5. 7. as a business expands, the cost of a media campaign can be divided over more units of sales reducing the cost per unit and making bigger campaigns more feasible.
  6. 9. occur when a firm’s average cost of production falls as the industry as a whole (rather than the firm itself) grows.
  7. 10. occurs when, as a business grows it splits the process of production into a series of separate routine tasks.
  8. 11. as the firm expands, it may adopt different production techniques to reduce the unit cost of production.
Down
  1. 1. as the firm gets bigger, they are able to buy more resources from suppliers at a discount.
  2. 5. occur when unit costs fall as the scale of production increases.
  3. 6. occur when issues outside of the organization raise the average costs of production for all businesses in the industry.
  4. 8. as a business gets bigger and has more assets, it may be able to borrow money at lower interest rates.