Describe economies of scale and diseconomies of scale.
Economies of scale in simple terms is the cost advantage that major companies look
It focuses output with less given input
The inputs can be land, labour, capital, entrepreneurship
In the long run the target is to lower the average cost
The major two categories of economies of scale are internal and external
Opposite to it is Diseconomies of scale
In this as output rises the production cost also increases
In the long run average cost increases
It is generally having cost disadvantage
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