ECONOMIES OF SCALE AND INTEGRATION
(Answer the following questions by referring the links given below)
1. Explain the terms ‘ increasing returns to scale , decreasing returns to scale and
constant returns to scale’.
2.What is meant by economies of scale ?
3. What is meant by diseconomies of scale ?
4.Explain what is meant by ‘ the optimum size’ for a firm .
5. Explain the meaning of internal economies of scale .
6. What are the five types of internal economies of scale ?
7. What is meant by financial economies ? Give examples .
8. What is meant by marketing economies ? Give examples .
9. What is meant by technical economies ? Give examples .
10. What is meant by risk-bearing economies ? Give examples .
11. What is meant by managerial economies ?
12. Define the term ‘ external economies’ of scale .
13. What are the main types of external economies of scale available to firms in an industry ?
14. Explain the term ‘ internal diseconomies of scale’.
15. Explain the term ‘ external diseconomies of scale’.
16. Explain three reasons for a firm to grow larger .
17. What is meant by amalgamation or integration ?
18. What are the two ways in which firms amalgamate ?
19. What is meant by a ‘ take – over’ ?
20. What is a ‘holding company’?
21. What is meant by a ‘ merger’ ?
22. What are the three types of integration ?
23. What is meant by ‘ horizontal integration’ ?
24. Why do firms integrate horizontally ?
25. Define the term ‘ rationalization’.
26. What is meant by ‘ Vertical integration’ ?
27. What is meant by ‘Vertical integration backwards’ ?
28. Give a reason for vertical integration backwards .
29. What is meant by ‘Vertical integration forwards’ ?
30. Give a reason for vertical integration forwards .
31. What is meant by lateral integration ?
32. Give a reason for lateral integration .
33. What are Conglomerates ?


http://en.wikipedia.org/wiki/Horizontal_integration
http://www.tutor2u.com/