Sources of economies of scale and diseconomies of scale. Concept Introduction: A competitive advantage that large entities have over smaller entities is called economies of scale. On the other hand the cost disadvantages that firms and government accrued due to increase in output and size hence increasing the unit cost per unit is called as diseconomies of scale.

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Chapter 7, Problem 4.11PA

To determine

Sources of economies of scale and diseconomies of scale.

Concept Introduction:

A competitive advantage that large entities have over smaller entities is called economies of scale. On the other hand the cost disadvantages that firms and government accrued due to increase in output and size hence increasing the unit cost per unit is called as diseconomies of scale.

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