growth

economies of scales

-       refers to a situation where the unit (average) cost of production decreases as the level of output increases

diseconomies of scale

companies sometimes get so big that they become less efficient, leading to an increase in unit costs as output increases. the increase in the per unit production cost as a business grows

internal economies of scale

cost reduction that can be achieved inside the company when it expands its outputs

purchasing economies of scale

occurs when a business buys inputs at a lower cost by purchasing larger amounts.  Buying in bulk

marketing economies of scale

occur when the cost of a marketing campaign is spread over a larger quantity of output thus lowering the average cost of the campaign

external economies of scale

cost-savings that occur due to external factors in the region or industry that are not under the control of the business

internal diseconomies of scale

increase in average unit cost when an organization becomes too big to manage effectively.

external diseconomies of scale

refers to increased unit cost of production for a business due to the expansion of the industry in which the business operates

limited natural resources

when businesses grow their output, they need more inputs of natural resources

limited infrastructure

when an industry expands businesses will use infrastructure more often