Business Growth (AQA A-Level Business): Flashcards
📚Flashcards
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10 cards from this deck
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Practise the cards
10 cards from this deck
Economies of scale
Economies of scale
Unit cost decreases as production scale increases
Two main types of business growth
Two main types of business growth
Organic (from within) & external (mergers/takeovers)
Technical economies
Technical economies
Efficient production methods/machinery at large volumes
Purchasing economies
Purchasing economies
Discounts from buying supplies in large quantities
External economies of scale
External economies of scale
Benefits to entire industry/area, not just one firm
Experience curve
Experience curve
Cost per unit falls as workers gain experience & efficiency
Economies of scope
Economies of scope
Cheaper for 1 firm to make many products than many making 1 each
Diseconomies of scale
Diseconomies of scale
Unit costs increase as production scale increases
Retrenchment
Retrenchment
Strategic shrinking of business to remain profitable
Communication issue in large firms
Communication issue in large firms
Slow & difficult with long chains of command