Questions and Answers
What do internal economies of scale refer to?
Benefits to the firm originating from the organization itself
When does a firm experience economies of scale?
When long-run average costs are falling
What are external economies of scale?
Benefits given to the firm from outside the firm
What is the optimum output level corresponding to on the long-run average costs curve?
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What do economies of scale lead to for a company?
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What do external economies of scale refer to?
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When does a firm experience diseconomies of scale?
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What do internal economies of scale benefit from?
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What is the optimum output level on the long-run average costs curve?
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What are the components of economies of scale in terms of?
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