Negative economies of scale occur when the expansion of production is accompanied by an increase in average unit costs.
Negative economies of scale may be associated with factors internal to the activity or external conditions beyond the control of the firm.
Negative economies of scale can be the result of technical problems in the production process, organizational management problems or lack of resources on production resources.
“Best Effort” is a legal term that represents the obligation of a party to a contract to take all possible steps to fulfill the terms of the agreement.
Disequilibrium is when external forces cause an imbalance between supply and demand in the market. In response, the market enters a state in which supply and demand do not match.
Economic equilibrium is a state in which market forces are balanced, a concept borrowed from the physical sciences, where observable physical forces can balance each other.
An economist is an expert who studies the relationship between a society’s resources and its production or output, using a number of different indicators to predict future trends.
A trade-off between equity and efficiency arises when there is some conflict between maximizing net economic efficiency and achieving other social goals.
External economies of scale - these are factors that contribute to the development of business, which are manifested outside the company, but within the same industry.