Diseconomies of scale

occur when the firm gets too big

costly, bespoke, skilled workers

A common reason for DOS

Workers don't feel valued and part of the business

operational flexibility

being able to change the products and quantity easily

lowers costs but requires a lot of finance

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Chapter 22 and 23 - Operations (AS)

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Questions 17

Answers

1
Diseconomies of scale
is caused by excellent bulk discounts
occur when production is too low
occur when the firm gets too big
isn't caused by demotivated staff
2
When going international the business should ignore...
workers rights and wages
laws and taxes
None of them
cultural differences
3
Which is likely to be an example of job production?
Starbucks mug
Tattoo
Nike shoes
A4 paper
4
Economies of scale
increase AC by decreasing output
lower AC by decreasing output
lower AC by increasing output
increase AC by increasing output
5
Buying in bulk to get discounts
purchasing EOS
management EOS
technical EOS
financial EOS
6
Productivity of firm B?
29
0.29
3.5
3.6
7
Job production
costly, bespoke, capital intensive
continuous flow
costly, bespoke, skilled workers
cheap, nasty, low quality
8
Labout cost per unit of firm B
200
311
221
316
9
High footfall usually comes at a cost of...
lower costs
No one walking past
Having no passing trade
A higher break even point
10
Buying the best CAD/CAM
management EOS
financial EOS
purchasing EOS
technical EOS
11
A major quantitative location consideration
look and feel of the building
room for further expansion
managers preference
transportation costs
12
A common reason for DOS
Employ the best managers
Afford the best machines
Have a large product range and portfolio
Workers don't feel valued and part of the business
13
Labour cost per unit of firm A?
400
4
200
300
14
operational flexibility
improving manufacturing systems
being able to change the products and quantity easily
improving finished goods
offering customized goods using CAM
15
More likely to get a loan with lower interest rates
purchasing EOS
management EOS
technical EOS
financial EOS
16
flow production
lowers costs but requires a lot of finance
decreases output
increases costs but requires little finance
decreases quality
17
Employing specialist and high quality leaders
financial EOS
management EOS
technical EOS
purchasing EOS

Chapter 22 and 23 - Operations (AS) Flashcards | StudBud