CA Foundation Exam > CA Foundation Questions > what is meant by Economies and diseconomies o...
Start Learning for Free
what is meant by Economies and diseconomies of scale ????
Most Upvoted Answer
what is meant by Economies and diseconomies of scale ????
When we talk about the scale of production of a firm, we often hear about the fact that large-scale production, usually, helps in reducing the cost of production. Economies of scale refer to these reduced costs per unit arising due to an increase in the total output. Diseconomies of scale, on the other hand, occur when the output increases to such a great extent that the cost per unit starts increasing. In this article, we will look at the internal and external, diseconomies and economies of scale.
Internal and External Economies
When a firm opts for large-scale production, the economies arising out of it are grouped into two categories:
Internal economies – economies of production that the firm accrues when it increases the output leading to a drop in the cost of production. These arise due to endogenous factors like entrepreneurial efficiency, talents of the management team, type of machinery, etc. These economies arise within the firm and help the firm only.
External economies – these are the benefits that each member firm of the industry accrues due to the expansion of the entire industry.
|
Explore Courses for CA Foundation exam
|
|
Similar CA Foundation Doubts
Top Courses for CA FoundationView all
what is meant by Economies and diseconomies of scale ????
Question Description
what is meant by Economies and diseconomies of scale ???? for CA Foundation 2025 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about what is meant by Economies and diseconomies of scale ???? covers all topics & solutions for CA Foundation 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for what is meant by Economies and diseconomies of scale ????.
what is meant by Economies and diseconomies of scale ???? for CA Foundation 2025 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about what is meant by Economies and diseconomies of scale ???? covers all topics & solutions for CA Foundation 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for what is meant by Economies and diseconomies of scale ????.
Solutions for what is meant by Economies and diseconomies of scale ???? in English & in Hindi are available as part of our courses for CA Foundation.
Download more important topics, notes, lectures and mock test series for CA Foundation Exam by signing up for free.
Here you can find the meaning of what is meant by Economies and diseconomies of scale ???? defined & explained in the simplest way possible. Besides giving the explanation of
what is meant by Economies and diseconomies of scale ????, a detailed solution for what is meant by Economies and diseconomies of scale ???? has been provided alongside types of what is meant by Economies and diseconomies of scale ???? theory, EduRev gives you an
ample number of questions to practice what is meant by Economies and diseconomies of scale ???? tests, examples and also practice CA Foundation tests.
|
|
Explore Courses for CA Foundation exam
|
|
Signup for Free!
Signup to see your scores go up within 7 days! Learn & Practice with 1000+ FREE Notes, Videos & Tests.
|
© EduRev
|
Education Revolution
|
|
Signup to see your scores
go up within 7 days!
Access 1000+ FREE Docs, Videos and Tests
Takes less than 10 seconds to signup