Topic 08: Size of Firms

Growth of Firms

• Meaning of firm
• Reasons for growth and ways to grow
• Integration and its types

Economies of Scale 

• Meaning
• Relationship with average cost
• Types of Economies of Scale (internal and external)

Diseconomies of Scale 

• Meaning
• Types of Diseconomies of Scale (internal and external)

Survival of Small Firms 

• Measuring Size
• Reasons for survival