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15 cards from this deck
Cost per unit decreases as businesses grow larger
Decrease
Purchasing power and technical improvements
Better deals from bulk buying due to bargaining power
Buying materials and supplies in large quantities
Ability to negotiate better deals with suppliers
Investing in expensive, efficient specialist machinery
Produces more items, reducing cost per unit
Average cost per unit increases as company grows too large
When companies become too large or expand too quickly
Communication problems, motivation challenges, coordination difficulties
Longer chains of command slow decision-making
Harder for different parts of business to communicate
Employees feel disconnected, reducing productivity
Need more managers, increases costs, wasted resources
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