Business Studies - 0450 CIE

Economies And Diseconomies Of Scale:

Muhtasari

Why can a giant supermarket sell a tin of beans for less than a corner shop pays for it? The answer is economies of scale: as a business grows bigger, the cost of making each unit can fall, handing large firms a powerful advantage. But grow too big and the opposite can happen, and costs creep back up.

In this lesson you will learn the five economies of scale that lower a big firm's average costs, and the diseconomies of scale that can raise them again. You will be able to calculate average cost, explain why size cuts both ways, and judge how large a business should aim to be.

Malengo

  1. The concept of economies of scale with examples, e.g. purchasing, marketing, financial, managerial, technical
  2. The concept of diseconomies of scale with examples, e.g. poor communication, lack of commitment from employees, weak coordination

Maelezo ya Somo

Economies of scale explain why large firms dominate so many industries and why growth is such a common objective. The exam asks you to name and explain the economies, recognise diseconomies, and often to calculate average cost. Getting the key idea (average cost, not total cost) right is the difference between full marks and none.

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Tathmini ya Somo

Hongera kwa kukamilisha somo la Economies And Diseconomies Of Scale:. Sasa kwa kuwa umechunguza dhana na mawazo muhimu, ni wakati wa kuweka ujuzi wako kwa mtihani. Sehemu hii inatoa mazoezi mbalimbali maswali yaliyoundwa ili kuimarisha uelewaji wako na kukusaidia kupima ufahamu wako wa nyenzo.

Utakutana na mchanganyiko wa aina mbalimbali za maswali, ikiwemo maswali ya kuchagua jibu sahihi, maswali ya majibu mafupi, na maswali ya insha. Kila swali limebuniwa kwa umakini ili kupima vipengele tofauti vya maarifa yako na ujuzi wa kufikiri kwa makini.

Tumia sehemu hii ya tathmini kama fursa ya kuimarisha uelewa wako wa mada na kubaini maeneo yoyote ambapo unaweza kuhitaji kusoma zaidi. Usikatishwe tamaa na changamoto zozote utakazokutana nazo; badala yake, zitazame kama fursa za kukua na kuboresha.

  1. Economies of scale lower a firm's: A. total cost B. average (unit) cost C. selling price only D. revenue Answer: B
  2. A firm has total costs of 800000 dollars and makes 40000 units. Its average cost is: A. 2 dollars B. 20 dollars C. 200 dollars D. 2000 dollars Answer: B
  3. Getting a discount for buying materials in bulk is a: A. financial economy B. purchasing economy C. technical economy D. managerial economy Answer: B
  4. Which is a diseconomy of scale? A. cheaper borrowing B. bulk-buying discounts C. poor communication in a very large firm D. specialist managers Answer: C
  5. A large firm can borrow money more cheaply than a small one. This is a: A. marketing economy B. financial economy C. technical economy D. purchasing economy Answer: B

Inapatikana kwenye programu ya Green Bridge

Pakua programu ya Green Bridge CBT kwenye simu yako au kompyuta yako ili kupata maelezo kamili ya masomo, maswali ya mazoezi, na mengi zaidi.

Maelezo kamili ya masomo yenye michoro
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Soma bila mtandao, wakati wowote, mahali popote
Inapatikana kwa Android, Windows, macOS, na Linux

Inapatikana kwenye programu ya Green Bridge

Pakua programu ya Green Bridge CBT kwenye simu yako au kompyuta yako ili kupata maelezo kamili ya masomo, maswali ya mazoezi, na mengi zaidi.

Maelezo kamili ya masomo yenye michoro
Msaidizi wa kujifunza wa AI
Soma bila mtandao, wakati wowote, mahali popote
Inapatikana kwa Android, Windows, macOS, na Linux

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