| Term | Definition |
|---|
| Economies of Scale | Costs per unit decrease as more units are produced |
| Diseconomies of Scale | This occurs if the level of output increases beyond the level which minimises average costs |
| Specialisation | Concentration on skillful production of one type of output which enables greater productivity |
| Division of labour | Splitting a specialist job into a number of different tasks |
| Diversification | Increasing the range of variety and spreading risks within a firm |
| Productivity | Output per unit of input, per unit of time |
| Production | Output of goods and services |
| Integration | External growth through mergers and takeovers |
| Mechanisation | Labour-saving technology which makes a good previously produced by hand |
| Technology | Capital goods used in the production process |
Combine with other sets
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