Economies of scale

1

What is a business most likely to experience after an increase in unit costs following a rise in the scale of operation?

2

Why can large firms gain a competitive advantage from mergers?

3

What does a takeover of a successful business to form a new company always cause?

4

What does spreading fixed costs over a larger level of output always cause?

5

What are purchasing economies?

6

As a firm grows in size, what happens to its unit costs?

7

A fall in unit costs following a fall in the scale of operation means the business is most likely to experience...

8

What are diseconomies of scale most likely to be caused by?

9

How do small firms survive in industries dominated by large firms?

10

What do economies of scale result in a fall in?