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Business Studies

Production

Economies of scale - Test

1.

What is a business most likely to experience after an increase in unit costs following a rise in the scale of operation?

2.

Why can large firms gain a competitive advantage from mergers?

3.

What does a takeover of a successful business to form a new company always cause?

4.

What does spreading fixed costs over a larger level of output always cause?

5.

What are purchasing economies?

6.

As a firm grows in size, what happens to its unit costs?

7.

A fall in unit costs following a fall in the scale of operation means the business is most likely to experience...

8.

What are diseconomies of scale most likely to be caused by?

9.

How do small firms survive in industries dominated by large firms?

10.

What do economies of scale result in a fall in?